TAMIL NADU ELECTRICITY REGULATORY

COMMISSION
----------------------------------------------------------------
Determination of Tariff for Generation
and Distribution
---------------------------------------------
Order No. 1 of 2012 dated 30-03-2012
(effective from 01-04-2012)






TAMIL NADU ELECTRICITY REGULATORY COMMISSION
(Constituted under section 82 (1) of Electricity Act 2003)
(Central Act 36 of 2003)

PRESENT : Thiru. K.Venugopal Member
Thiru. S.Nagalsamy Member

Order No 1 of 2012, dated 30-03-2012


In the matter of: Determination of Tariff for Generation and Distribution

In exercise of power conferred by clauses (a), (c)& (d) of sub section (1) of Section 62 and
clause (a) of subsection(1) of Section 86 (1) (a) of the Electricity Act 2003, (Central Act 36 of
2003), and after taking into account the stipulations in the National Electricity Policy and the
Tariff Policy, TNERC (Terms and conditions for determination of tariff) Regulations 2005,
TNERC (Terms and Conditions for Determination of Tariff for Intra state Transmission /
Distribution of Electricity under MYT Framework ) Regulations, 2009, and all other powers here
unto enabling in that behalf and after considering the views of the State Advisory Committee
meeting held on 27-01-2012 in accordance with section 88, after examining the comments
received from the stakeholders and after considering suggestions and objections received from
the public during the public hearings held on 30-01-2012, 02-02-2012, 06-02-2012 and 10-02-
2012 as per section 64, the Tamil Nadu Electricity Regulatory Commission, hereby, passes this
order for Generation and Distribution Tariff.
This Order shall take effect on and from the April 1, 2012.

(S. Nagalsamy) (K.Venugopal)
Member Member



Table of Contents
1 INTRODUCTION ..................................................................................................................................... 1
Background ................................................................................................................................................... 1
Preamble ....................................................................................................................................................... 1
2 Issue-wise summary of views, comments and suggestions of stakeholders on Petition and
TANGEDCOs Replies and Commissions Views .......................................................................................... 10
3 ENERGY SALES ..................................................................................................................................... 93
Energy Sales: ............................................................................................................................................... 93
T&D Loss: .................................................................................................................................................. 112
4 Energy Availability ............................................................................................................................. 117
Thermal Power Stations: ........................................................................................................................... 117
Gas Turbine Power Stations: ..................................................................................................................... 129
Hydel Generation: ..................................................................................................................................... 138
Wind Generation: ..................................................................................................................................... 142
Energy Available from Other Sources: ...................................................................................................... 144
5 FIXED COST ........................................................................................................................................ 164
Capital Expenditure and Capitalisation ..................................................................................................... 164
6 Expenses on account of Generation ................................................................................................. 196
Part-I: Fixed Cost: ...................................................................................................................................... 196
Return on Equity: ...................................................................................................................................... 197
Operation and Maintenance Expenses: .................................................................................................... 203
Other debts and Miscellaneous Income: .................................................................................................. 211
Part-II: Variable Cost: ................................................................................................................................ 217
Provisional Tariff for New Thermal Power Stations: ................................................................................. 230
Variable cost for Gas Turbine Power Stations: ......................................................................................... 230
Hydro Generating Stations:....................................................................................................................... 237
Provisional Tariff for New Hydro Generating Stations: ............................................................................ 239
Wind Generating Stations: ........................................................................................................................ 239
Summary for Own Generation: ................................................................................................................. 240
7 POWER PURCHASE COST FROM OTHER SOURCES ........................................................................... 245
Merit Order Ranking: ................................................................................................................................ 245
Power Purchase Cost: ............................................................................................................................... 248
8 Aggregate Revenue Requirement of TANGEDCO ............................................................................. 276
Regulatory Framework.............................................................................................................................. 276
Fixed Cost: ................................................................................................................................................. 277
Own Generation and Power Purchase Cost: ............................................................................................. 277
Intra-State Transmission Charges: ............................................................................................................ 278
Non Tariff and Other Income .................................................................................................................... 279
Sharing of Gain and Losses ....................................................................................................................... 280
Aggregate Revenue Requirement of TANGEDCO ..................................................................................... 281
9 TARIFF PHILOSOPHY AND CATEGORY-WISE TARIFFS FOR FY 2010-11 ............................................. 283
10 TARIFF SCHEDULE ......................................................................................................................... 319
TARIFF FOR HIGH TENSION SUPPLY CONSUMERS .................................................................................... 319
TARIFF FOR LOW TENSION SUPPLY CONSUMERS ..................................................................................... 325
Applicability of the Tariff Schedule ........................................................................................................... 338
11 SUMMARY OF DIRECTIVES ............................................................................................................ 340


List of Abbreviations

S. No Abbreviation Description
1 A & G Administration and General Expenses
2 ABC Aerial Bunched Cables
3 ABR Average Billing Rate
4 ARR Aggregate Revenue Requirement
5 CERC Central Electricity Regulatory Commission
6 CGS Central Generating Station
7 COS Cost of Supply
8 CPP Captive Power Plant
9 CSD Consumer Security Deposit
10 DA Dearness Allowance
11 EA Electricity Act
12 ED Electricity Duty
13 FY Financial Year
14 GFA Gross Fixed Assets
15 H1 First Half
16 H2 Second Half
17 HT High Tension
18 HVDS High Voltage Distribution System
19 kWh Kilo-watt Hour
20 LT Low Tension
21 MU Million Units
22 MW Mega-watt
23 MYT Multi-Year Tariff
24 O & M Operation & Maintenance
25 R & M Repair & Maintenance
26 O & M Operation & Maintenance
27 RoE Return on Equity
28 TO Tariff Order
29 TP Tariff Policy
30 TVS Technical Validation Session
31 Y-O-Y Year on Year





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1 INTRODUCTION
Background
Preamble
1.1.1 Consequent to the enactment of the Electricity Regulatory Commissions Act 1998
(Central Act 14 of 1998), the Government of Tamil Nadu constituted the Tamil Nadu
Electricity Regulatory Commission (TNERC) vide G.O.Ms.No.58, Energy (A1)
Department, dated 17-03-1999.
1.1.2 The Commission issued its first tariff order under section 29 of the Electricity Regulatory
Commission Act, 1998, on 15-03-2003 based on the petition filed by the Tamil Nadu
Electricity Board (TNEB) on 25-09-2002.
1.1.3 In Para 7.2 of the order dated 15-03-2003, the Commission issued the following rulings:
The Commission thus rules that the revised tariffs would be applicable from 16
th
March
2003 to 31
st
March 2004, and till such further time as the TNEB does not approach the
Commission for tariff revision. The Commission also directs that, henceforth, the TNEB
should submit a Tariff Proposal for any financial year by the end of December of the
previous financial year. In other words, the Commission expects the TNEB to submit a
tariff revision proposal for FY 2004-05 before the end of December 2003, in case the
TNEB desires to revise the tariffs for FY 2004-05.
1.1.4 The TNEB did not come before the Commission for revision of retail tariff till January
2010. In the meantime, Electricity Regulatory Commission Act, 1998 was repealed and
the Electricity Act 2003 (Central Act 36 of 2003) (hereinafter called Act) was enacted
with effect from 10-06-2003.
1.1.5 The Commission notified the Tamil Nadu Electricity Regulatory Commission (Terms and
Conditions for Determination of Tariff) Regulations 2005 (herein after called Tariff
Regulations) on 03-08-2005 under section 61 read with section 181 of the Act.
1.1.6 The Commission issued separate order on Transmission charges, Wheeling Charges,
Cross Subsidy surcharge and Additional Surcharge on 15-05-2006, based on the petition
filed by TNEB on 26-09-2005 under section 42 of the Act.

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1.1.7 The Commission has also issued two generation Tariff Orders between 2003 and 2010
for wind, biomass based power plants and other captive and co-generation plants.
1.1.8 The Commission notified the TNERC (Terms and Conditions for Determination of Tariff
for Intra state Transmission / Distribution of Electricity under MYT Framework)
Regulations, 2009 (herein after called MYT Regulations).
1.1.9 Subsequently, TNEB filed an application for determination of tariff with Aggregate
Revenue Requirement (ARR) for all functions on 18-01-2010, which was admitted by the
Commission after initial scrutiny on 09-02-2010.
1.1.10 The Commission issued its second Retail Tariff Order on 31.07.2010.
1.1.11 Government of Tamil Nadu, in G.O (Ms) No 114 Energy Dept, dated 08-10-2008 have
accorded in principle approval for the re-organisation of TNEB by establishment of a
holding company, namely TNEB Ltd and two subsidiary companies, namely Tamil Nadu
Transmission Corporation Ltd (TANTRANSCO) and Tamil Nadu Generation and
Distribution Corporation Ltd (TANGEDCO) with the stipulation that the aforementioned
companies shall be fully owned by Government.
1.1.12 Tamil Nadu Generation and Distribution Corporation Ltd. was incorporated on 01-12-
2009 and started functioning as such w.e.f. 01-11-2010.
1.1.13 This is the third Order of the Commission on determination of Generation and Retail
Tariff.
1.1.14 TNEB was formed as a statutory body by the Government of Tamil Nadu (GOTN) on 01-
07-1957 under the Electricity (Supply) Act 1948. The Board was primarily responsible
for generation, transmission, distribution and supply of electricity in the State of Tamil
Nadu and on 1/11/2010 it was bifurcated as TANGEDCO, TANTRANSCO and and a
holding company, TNEB Limited.
1.2 Applicability of Order
1.2.1 This Order will come into effect from 01-04-2012. The Generation and retail tariff
contained in this order will be valid till 31-03-2013. TANGEDCO shall file necessary
petition in accordance with the Regulations in time to enable the Commission to pass the
next Tariff Order in time.

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1.3 Tariff Filing
1.3.1 The Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) has filed
Application before the Commission on 17-11-2011 for preliminary true-up and approval
of Aggregate Revenue Requirement (ARR) for the year 2010-11 and approval of ARR
for the year 2011-12 and 2012-13 under Multi Year Tariff and also applied for tariff
revision with effect from 01-04-2012 or earlier.
1.3.2 The above petition was admitted and hosted by the Commission on its website on 25-11-
2011 and registered as TP 1 of 2011.
1.4 Procedure Adopted
1.4.1 Regulation 7 (2) of Tariff Regulation specifies the following: The applicant shall
publish, for the information of public, the contents of the application in an abridged form
in English and Tamil newspapers having wide circulation and as per the direction of the
Commission in this regard. The copies of Petition and documents filed with the
Commission shall also be made available at a nominal price, besides hosting them in the
website.
1.4.2 The public notice containing the salient details with regard to the petition was approved
and communicated to TANGEDCO on December 1, 2011, with a direction to arrange
publication of the notice in news papers on December 2, 2011 and invited written
objections/suggestions/views from by 31-01-2012.
1.4.3 The TANGEDCO published the public notice in the following newspapers on December
2, 2011.
a) The New Indian Express (English Daily);
b) The Hindu (English Daily);
c) Dinamalar (Tamil Daily) and
d) Daily Thanthi (Tamil Daily)
1.4.4 The Petition was placed before the State Advisory Committee on 27-01-2012. The list of
Members who participated in the meetings is detailed as Annexure I to this Order.
1.4.5 The views / comments expressed by the members are included in Chapter 2 of this Order.

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1.4.6 The list of stakeholders who have submitted objections/suggestions/views regarding the
petition in response to the public notice are detailed in Annexure II and
Objectios/suggestions/views are included in Chapter 2.
1.4.7 The Commission conducted public hearing at the following places on the dates noted
against each:

Date Day Place Venue
30-01-2012 Monday Chennai
Tamil Isai Sangam, Raja Annamalai
Mandram, (Near High Court),5, Esplanade
Road, Chennai- 108
02-02-2012 Thursday Coimbatore
Corporation Kalaiarangam, R.S. Puram,
Coimbatore
06-02-2012 Monday Tiruchirappalli
Barbier Hall (Jubilee Building), St. Joseph's
College, Tiruchirappalli - 2
10-02-2012 Friday Madurai
Indian Medical Association Hall, Madurai
Medical College Premises, No. 1 Panagal
Road, Madurai - 20
1.4.8 The lists of participants in each public hearing, is attached as Annexure III to this Order.
The views / comments / objections raised by the participants are discussed in Chapter 2.
1.5 The Electricity Act, 2003, Tariff Policy (TP) and Regulations
Section-61 of the Act stipulates the guiding principles for determination of Tariff by the
Commission and mandates that the Tariff should progressively reflect cost of supply of
electricity, reduce cross-subsidy, safeguard consumer interest and recover the cost of
electricity in a reasonable manner.

Section-62 (1) of Act states as under:
Section-62 (1):
1. The Appropriate Commission shall determine the tariff in accordance with
provisions of this Act for
a. supply of electricity by a generating company to a distribution licensee:
Provided that the Appropriate Commission may, in case of shortage of
supply of electricity, fix the minimum and maximum ceiling of tariff for sale

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or purchase of electricity in pursuance of an agreement, entered into
between a generating company and a licensee or between licensees, for a
period not exceeding one year to ensure reasonable prices of electricity;
b. transmission of electricity ;
c. wheeling of electricity;
d. retail sale of electricity.
Provided that in case of distribution of electricity in the same area by two or
more distribution licensees, the Appropriate Commission may, for promoting
competition among distribution licensees, fix only maximum ceiling of tariff for
retail sale of electricity.
1.6 Similarly, the objectives stipulated in the Tariff Policy are as under:
4.0 Objectives of the policy
The objectives of this tariff policy are to:
a. Ensure availability of electricity to consumers at reasonable and
competitive rates;
b. Ensure financial viability of the sector and attract investments;
c. Promote transparency, consistency and predictability in regulatory
approaches across jurisdictions and minimise perceptions of regulatory
risks;
d. Promote competition, efficiency in operations and improvement in quality of
supply.
1.6.1 In the State of Tamil Nadu, Tamil Nadu Electricity Regulatory Commission in
exercise of powers vested in it under the Electricity Act, 2003 (Act) passes the Tariff
Orders.
1.7 Brief Note on Tariff Filing and Public Hearing
1.7.1 The Tariff Petition TP 1 of 2011 filed by TANGEDCO is the first Tariff Petition for
fixation of retail tariff for the year 2012-13 after the unbundling and issue of transfer
scheme by the Government of Tamil Nadu. The Transfer scheme dated 19-10-2010 is
enclosed as Annexure IV. This Transfer Scheme is a provisional Transfer Scheme,
addresses various issues like transfer of assets, revaluation of assets and partly address
the accumulated losses. This Transfer Scheme also envisages deployment of staff of the
erstwhile TNEB in the TANGEDCO and TANTRANSCO. The Commission in its earlier
Tariff Order No. 3 of 2010 dated 31-07-2010 had suggested in line with the Natioanal
Electricity Policy (para 5.4.3) and Tariff Policy that the accumulated losses should not be
passed on to the successor entities and financial restructuring has to be resorted to clean

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up the Balance Sheet of the successor companies and allow them to start on a clean slate
so that the successor entities can start performing better. The following statutory advices
have been sent to the Government of Tamil Nadu in this regard and they are appended as
Annexure V The Commission has also sent another statutory advice with regard to the
establishment of a separate Generating Company and establishment of four Distribution
Companies so that the performance of these companies can be improved which will
enable proper investments and growth of the individual company. These are also
appended as Annexure VI.
1.7.2 The Government of Tamil Nadu has issued an amended Transfer Scheme on 2-1-2012
which is appended as Annexure VII. This Transfer Scheme is also provisional and is
subject to revision. Besides various other issues, this Transfer Scheme specified that the
retirement benefits of the employees of TNEB/ successor entities will be met out of the
Revenue Account.
1.7.3 Over a period of years, the Capital Account and the Revenue Account has been mixed up
in the operation of TNEB and an attempt is being made in this order to segregate this to
bring financial discipline in the successor entities. TNEB and successor entities have
reported accumulated losses of around Rs. 50,000 crores over the years. The Commission
in its earlier Order dated 31-07-2010 through its various Statutory advices has suggested
to the Government of Tamil Nadu to take care of the accumulated losses up to the
unbundling period by way of financial restructuring so that the burden of the same is not
passed on to the consumers. This suggestion is also in line with Para 5.4.3 of the National
Electricity Policy which are extracted below.
5.4.3 For achieving efficiency gains proper restructuring of distribution utilities is
essential. Adequate transition financing support would also be necessary for these
utilities. Such support should be arranged linked to attainment of predetermined
efficiency improvements and reduction in cash losses and putting in place appropriate
governance structure for insulating the service providers from extraneous interference
while at the same time ensuring transparency and accountability. For ensuring financial
viability and sustainability, State Governments would need to restructure the liabilities of
the State Electricity Boards to ensure that the successor companies are not burdened
with past liabilities. The Central Government would also assist the States, which develop
a clear roadmap for turnaround, in arranging transition financing from various sources
which shall be linked to predetermined improvements and efficiency gains aimed at
attaining financial viability and also putting in place appropriate governance
structures.

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1.7.4 The following generating stations are likely to be commissioned during the year 2012-13.
Sl. No.
Name of the Generation
Station
Capacity in MW
Commercial Operation
Date
1 North Chennai TPS Unit I 600 October, 2012
2 North Chennai TPS Unit II 600 June, 2012
3
Vallur TPS (JV of TNEB
and NTPC)

- Unit I 500 March, 2012
- Unit II 500 February, 2013
- Unit III 500

(Allocation from this station
to Tamil Nadu is 1075 MW)

4 Mettur TPS Stage III 600
300 MW by March 2012;
300 MW by June 2012
5
Nevyeli Lignite
Corporation TS Expansion
II Unit 1 &2 (Allocation to
Tamil Nadu is 195.5 MW)
2 x 250
250 MW by March 2012
and 250 MW by
September 2012
6
MAPS Additional PFBR
Kalpakkam (Allocation of
142 MW to Tamil Nadu)
500 500 MW by May 2012
1.7.5 This Order deals with major issues like accumulated losses of TANGEDCO, Regulatory
Asset, Tariff hike, power cuts. and new capacity additions by TANGEDCO etc. The
unmetered supply in the State mainly relate to agriculture and huts. TANGEDCO has
been assuming the AT&C loss level by back calculating the consumption of agriculture
and huts. This issue was also a subject matter of Appeal before the Honble Appellate
Tribunal of Electricity. The Commission had estimated agricultural consumption based
on the CEA formula in its last Tariff Order. The Commission had also directed
TANGEDCO to furnish sample data of the metered connections for agricultural supply.
Based on the same data furnished by TANGEDCO the consumption per Horse Power
(HP) for agriculture was worked out and the same has been taken into account while
calculating the energy requirement for agriculture. Similarly, estimates have been made
for consumption by huts duly reflecting the number of huts with and without televisions.
It is also proposed to factor in the consumption on account of distribution of free mixers,
grinders and fans.

1.7.6 The cost of entire consumption on account of huts as well as on account of agricultural
consumption has to be borne by the Government of Tamil Nadu by way of subsidy under

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Section 65 of the Electricity Act 2003. In this matter, GoTN has issued a policy direction
and commitment letter Ms No. 8 dated 04-02-2012 detailing provision of tariff subsidy to
certain categories of electricity consumers. GoTN has also stated that they would
consider any modifications of the stated subsidy rates in future also taking into
consideration the needs of TANGEDCO and cannons of financial prudence.
TANGEDCO would prepare an estimate of the susbsidy and reflect the same in their
quarterly subsidy bills. The TANGEDCO shall furnish such details to the Commission on
quarterly basis and on approval of the same, the Government of Tamil Nadu will have to
provide the matching subsidy. As an improvement of the sampling process for
agricultural consumption, it is necessary for TANGEDCO to install Distribution
Transformer Meters in all the Distribution Transformers. These meters shall have AMR
facility so that they can be read from remote. Based on the reading of the Distribution
Transformer Meters, it will be possible to work out the unmetered consumption more
accurately after accounting for all the metered connections and a reasonable assumption
on the line loss in the last mile can be made. Nevertheless, the existing arrangement of
the sample meters shall be continued. The TANGEDCO has also stated that they have
awarded a study to Anna University for estimation of losses. This study shall be
expeditiously completed and the report, after approval by Board of Directors of
TANGEDCO, shall be submitted to the Commission latest by 30
th
November 2012.
1.7.7 The proposal of TANGEDCO in their petition involves creation of Regulatory Asset to
the tune of Rs. 24,762 Crores. Creation of a Regulatory Asset is not a good practice under
most conditions. In this particular case, the tariff hike sought for by the TANGEDCO for
the year 2012-13 is Rs. 9,741 Crore which amounts to 37% increase over the existing
tariff. Even after this proposal, the Petition envisages creation of Regulatory Assets of Rs.
4,806 Crore for FY 2012-13. It is not possible to hike the tariff by Rs. 24762 Crore (the
entire revenue gap), which will amount to an increase in tariff of 93%, further. Such a
steep increase may also not be justifiable as the same (high level of) tariff may not be
required to be maintained in future. While the accumulated losses before unbundling
have been proposed to be addressed through financial restructuring, losses to the
magnitude of Rs. 24762.31 Crore may be dealt with by a combination of Tariff hike and
Regulatory Asset. The Commission, therefore, would like to get the reaction of the
Government of Tamil Nadu in this regard and accordingly a reference was made to the
Government of Tamil Nadu on 16-03-2012 vide Commission letter Lr. No.
TNERC/Tariff/DDT-II/R.A./D.No.381/2012, which is enclosed as Annexure VIII in
reply of which the Government has reverted vide letter dated 25-03-2012 which is

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enclosed as Annexure IX. The Commission appreciates the concerns expressed by
various stake holders both in the written comments submitted by them to the Commission
as well as the concerns expressed during the Public Hearings held at Chennai at 30
th

January 2012, Coimbatore on 2
nd
February 2012, Tiruchirapalli on 6
th
February 2012 and
at Madurai on 10
th
February 2012. The Commission directs the TANGEDCO to properly
monitor the on-going projects so that they are commissioned without further delay. The
TANGEDCO should also ensure that the TANTRANSCO completes all the associated
transmission system for evacuation of power from the generating stations which are
getting commissioned during the year 2012-13 so that power generated from the
generating stations are transmitted up to the Load Centers without any bottle necks. The
TANGEDCO should ensure that the power which is available at the sub-stations is taken
up to the consumption points by way of appropriate distribution system. All these
arrangements will have to be carried out through a well structured business plan and
individual schemes matching with the business plan. All such plans and schemes shall be
submitted in accordance with the Terms and Conditions of Tariff Regulations 2005,
MYT Tariff Regulations as well as Licensing Conditions to the Commission. The
submission for approval in this regard so far has been unsatisfactory. The Commission
has been addressing the utilities by way of letters as well as by way of directions. The
compliance to such letters and directions will have to be more serious.
1.8 Further, correspondence with TANGEDCO in regard to data gaps and replies furnished
are enclosed in Annexure X.
1.9 The meetings and discussions referred to in this Order pertain to meetings between the
staff of the Commission and the TANGEDCO.
1.10 Various suggestions and objections that were raised on TANGEDCOs Petition after
issuance of the Public Notice both in writing as well as during the Public Hearing, along
with TANGEDCOs response and the Commission's rulings have been detailed in Section
2 of this Order.






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2 Issue-wise summary of views, comments and suggestions of stakeholders
on Petition and TANGEDCOs Replies and Commissions Views

The following are the views/ objections/ suggestions given by stakeholders in writing as well as
in public hearing.
Issue-1: General
2.1.1 The Commission to reduce the Tariff instead of increasing the same.
2.1.2 TANGEDCO may submit the Tariff Petition every year by December and the new tariff
may be made applicable with effect from 1st April of every financial year so that the
burden on the consumers due to the abrupt rise in tariff maybe avoided.
2.1.3 The Commission to issue guidelines for domestic consumers and commercial
establishments to install single star rated installations and three star rated installations.
2.1.4 TANGEDCO may be further bifurcated into Generation Company and Distribution
Company for better management.
2.1.5 TANGEDCO may provide the Action Taken Report on the suggestions, directions and
decisions issued by TNERC in the Tariff Order No. 3/2010 dated 31-07-2010.
2.1.6 The deemed demand benefit may be continued in view of the supply of demand by the
generator to the grid while allotting energy to Open Access consumers.
2.1.7 TANGEDCOs petition does not adhere to the directions given by the APTEL.
2.1.8 Truing-up for the previous year is based on preliminary estimates for the year 2010-11.
The numbers approved by TNERC are different from the numbers submitted in the Tariff
Order dated 31-07-2010 and the numbers submitted for truing up on preliminary basis.
2.1.9 TANGEDCO should provide electricity bill or demand note to its consumers which will
help the consumers to understand the date of reading taken on energy meter.


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2.1.10 TANGEDCO has reduced the payment period from 30 days to 20 days. It should be
continued as 30 days and it should issue notices to all its consumers as being done by
other Government departments.
2.1.11 The neighboring states like Kerala, Karnataka, and Andhra Pradesh have lesser cost of
electricity than Tamil Nadu.
2.1.12 The Commission is processing the Tariff Petition at a fast pace in the absence of the
Chairman of the Commission.
2.1.13 The Government may control road side advertisements/ hoardings which consume
electricity.
2.1.14 The Tamil Nadu Government may constitute an Empowered Group of Eminent Energy
Experts for the resolution of power crisis and submit its recommendations within a
specified time frame.
2.1.15 TANGEDCO should take measures for non-collection of dues from even Government
departments, Panchayats, Municipalities etc.
2.1.16 The Commission may publish a white paper on the case that TANGEDCO was making
profit till 1998 and after 2003, TANGEDCO has reported a loss of Rs. 40,000 crores.
2.1.17 The interest on Current Consumption Deposit is paid at 6% whereas the BPSC charges
are levied at a higher rate.
2.1.18 Electricity cess should be introduced on the same lines as Education cess.
2.1.19 The Commission has not raised the tariff for 8 years and therefore tariff may be increased
for all the categories. Tariff revision may be uniform for all categories of consumers. The
Commission may increase the tariff but tariff shock may be avoided.
2.1.20 The tariff may be increased on account of increase in power purchase cost.
2.1.21 The Commission may direct TANGEDCO to create a special Reconciliation Wing in the
Regulatory Cell.
2.1.22 TANGEDCO has not provided backup calculations for the retail tariffs. TANGEDCO is
requested to furnish the basis of deriving Rs. 300 per KVA and Rs. 5 as energy charge.


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Issue-2: Regulatory Asset
2.1.23 The Objectors submitted that the deficit for the current year and ensuing year FY 2012-13
is projected as Rs. 14,496.53 Crore and Rs. 14,547 Crore respectively. TANGEDCO has
proposed to recover only Rs. 9,741 Crore through partial tariff revision proposal, leaving
a revenue gap of Rs. 4,806 Crore in FY 2012-13 and prayed to treat the unrecovered
revenue gap as regulatory asset. Regulatory asset could be created only under exceptional
circumstances as stipulated in National Tariff Policy and TNERC Regulation 2005.
Tariff Policy
Para 8.2.2. The facility of a regulatory asset has been adopted by some
Regulatory Commissions in the past to limit the tariff impact in a particular year.
This should be done only as exception, and subject to the following guidelines.
a. The circumstances should be clearly defined through regulations, and should
only include natural causes or force majeure conditions. Under business as
usual conditions, the opening balance of unrecovered gap must be covered
through transition financing arrangement or capital restructuring;
b. Carrying cost of Regulatory Asset should be allowed to the utilities;
c. Recovery of Regulatory Asset should be time bound and within a period not
exceeding three years at the most and preferably within control period;
d. The use of facility of Regulatory Asset should not be repetitive.
e. In cases where Regulatory Asset is proposed to be adopted, it should be
ensured that the return on equity should not become unreasonably low in any
year so that the capability of licensee to borrow is not adversely affected.
TNERC Tariff Regulation 2005: Regulation 13: Regulatory Asset
Wherever the licensee could not fully recover the reasonably incurred cost at the
tariff allowed with his best effort and after achieving the benchmark standards for
the reasons beyond his control under natural calamities and force majeure
conditions and consequently there is a revenue shortfall and if the Commission is
satisfied with such conditions, the Commission shall treat such revenue shortfall
as Regulatory Asset.
The Honble Appellate Tribunal for Electricity has also ruled at Para 8.10 of their
judgment rendered in Appeal nos. 196 & 206 of 2010:
Now the question arises whether the creation of Regulatory Asset is in the
interest of Distribution Company and the consumers. Respondent no. 1 will have
to raise debt to meet its revenue shortfall for meeting its O&M expense, power
purchase costs and system augmentation works. It is not understood how the
respondent no. 1will service its debts when no recovery of regulatory asset and

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carrying costs has been allowed in the ARR. Thus, the respondent no.1 will suffer
with cash flow problem affecting its operations and power procurement which
will also have an adverse effect on maintaining a reliable power supply to the
consumers. Thus, creation of regulatory asset will neither be in the interest of the
respondent no. 1 nor the consumers.

2.1.24 The Government may come out with a proposal for undertaking TANGEDCOs
liabilities in line with a similar dispensation provided in 2002 based on The Ahluwalia
Committee Recommendations in which the pending payments of all the SEBs to CPUs
were undertaken by the respective state government by issue of bonds.
2.1.25 Losses accumulated to the tune of Rs. 6,273.21 Crore, upto 03-10-2010, has been
proposed to be absorbed in the final Transfer Scheme. Therefore it cannot be included as
part of regulatory asset. The Regulatory Asset concept should not be an adjustment
mechanism for accounting of losses as per International Financial Reporting System
(IFRS).
2.1.26 The entire Revenue Requirement must be met through the Tariff Proposal without any
gap. Also, it was submitted that control period for the Tariff Order must be only for 1
year. For the year 2013-14, the tariff petition should be approved before 31-03-2013,
failure of which should attract tariff reduction by 10%. This may also be incorporated in
the present order.
2.1.27 Initially, capital subsidy was given to TANGEDCO (erstwhile TNEB) which was later
stopped in 1993-94. If continued, there will be no need to create Regulatory Asset.

Issue-3: Interest on Loan
2.1.28 There is abnormal increase in the interest on loan as there is no clarity on data provided
by TANGEDCO as to how much loan has been availed for capital expenditure and how
much for revenue expenditure.

Issue-4: Pension Fund Reserve
2.1.29 TANGEDCO has not addressed the issue of creating a Reserve for Pension Fund despite
being repeatedly directed by the Commission.


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Issue-5: Fuel Cost / Fuel Price Adjustment Charge (FPAC)
2.1.30 The fuel cost shows abnormal increase compared to power purchase cost. Fuel cost has
been claimed more than twice the increase in power purchase cost, when apparently there
is no corresponding increase in quantum of energy generated from own thermal
generating stations
2.1.31 Capacity addition with respect to new thermal generating stations or in existing
generating stations may be verified in detail before approval by the Commission.
2.1.32 TANGEDCO has not resorted to seek the sanction of Fuel Price Adjustment Charge
(FPAC) even though Electricity Regulatory Commissions Act 1998 or the Electricity
Act 2003 provided the same. An appropriate and simple formula should be derived for
calculating FPAC. Also, FPAC should be recovered from all the consumers paying,
subsidized or non paying consumers.
2.1.33 The quarterly estimation of escalation charge should be worked out for which
TANGEDCO should get internally audited and certified figures for all the fuel purchases.
Alternatively, quarter wise FPAC comparison may be covered. Also, TANGENDCO
should get the particulars from the suppliers of power, excluding the power traders which
will ensure four or two charges per year. If TANGEDCO wants to add any other charge,
then it should be proved that such added charges for any quarter are truly related to fuel
purchases made during that adjustment period.
2.1.34 Proof of payment to the supplier of power may be provided by TANGEDCO at the time
of claiming FPAC. The Commission is requested to fix a time line for submitting FPAC
every quarter.
2.1.35 In case of blending of indigenous and imported coal for generation, the increase in value
of both the coal types must be considered with the GCV and ash value, so that the blends
weighted average GCV of coal can be assessed.
2.1.36 The Commission may prescribe norms of consumption for different load factors for the
units/substations.


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2.1.37 The valuation of coal or oil must be based on a weighted average methodology (ARC or
APRC) and not on FIFO or LIFO prices. TANGEDCO may be using the FIFO or LIFO
for financial accounting purpose.
2.1.38 TANGEDCO has proposed the average rate of power purchase as approved by the
Commission for FPAC on power purchase. The Commission may provide the method to
treat the excess purchases over the approved quantity of purchases while calculating
FPAC.
2.1.39 FPAC should include variable cost only. The fixed cost should not be considered in the
FPAC formula. Interest charges on increase in stock of fuel may not be included and
hence, working capital may form a part of FPAC. Any excess transportation charges or
demurrages payable for delay in clearing the coal supplies for the port or non availability
of berths in the ports of loading or discharge must not be included in FPAC. For the fuel
supplies made during the adjustment period, no transit and handling losses must be added
for calculating FPAC.
2.1.40 The FPAC may be calculated in two parts:
a. The FPAC for individual supplies or purchases of power must be identified, as the
GCV or supplies may vary as also the specific fuel consumption.
b. FPACs thus calculated, must be aggregated as a total charge per unit of consumption
for all electricity consumers.
2.1.41 TANGEDCO may ask for a consent letter from the State Government for FPAC incurred
on the partially or totally subsidized consumers.
2.1.42 The formula suggested by TANGEDCO is simple but working out the charge for
individual sources of power generation or source of supply may be very cumbersome.
Source of the coal and transportation cost incurred has been one of the major issues. The
pricing of coal may be done recognizing the multimodal mechanism of transport. The
voyages accounts of the PSC may be reconciled promptly and payments settled for the
correct grade of coal as well as its transportation costs as the landed price of coal.
2.1.43 TANGEDCO may submit the FPAC schedule timely and also account the entire major
factors involved in the fuel cost. If there is any delay in submission of FPAC, then the
FPAC may be made applicable from the date of approval by the Commission and not on
quarterly basis.


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2.1.44 The Commission may establish a normative datum reference cost per million kilocalories
of all fuels on a weighted basis and direct TANGEDCO to work out the difference in
consumption of fuels compared to normative consumption levels and allow the excess to
merge with the tariff or extend the deficit as a tariff adjustment for all the consumers.
2.1.45 TANGEDCO has filed its proposal for the FPAC formula for avoiding the uncontrollable
cost on account of hydro thermal mix in power generation and purchase. This would
enable TANGEDCO to recover the actual cost of the fuel incurred and the actual cost of
power purchase.

Issue-6: Cost of Supply
2.1.46 The Tariff may be fixed as per the consumers load factor, power factor, voltage, total
consumption of electricity and should reflect the Cost of Supply to the concerned
consumer category.
2.1.47 TANGEDCO should furnish a statement showing the Cost to Serve for each category of
consumers at different voltage level with allocation of Transmission & Distribution loss
and consumer wise cross subsidy at the existing tariff while submitting ARR.
2.1.48 TANGEDCO has assumed that all the energy imported into and handled in the grid is at a
single voltage level of 230 KV and priced accordingly. The ARR must reflect that
TANGEDCO is receiving power from various internal and external sources and at
different voltage levels.
2.1.49 The transmission loss for each of 110 KV and 33 KV levels have been stated to be 1409
MU, while the estimated annual consumption at these voltage levels are 2342 MU and
2805 MU respectively. The loss figures seem to be incorrect as the loss should be
approximately proportional to load factor and its squared value.
2.1.50 TANGEDCO has consumers in EHT-230 KV, 110 KV, 66 KV, 33 KV, and HT-22/11
KV voltage levels besides in LT 415/230 voltage segments. The rates mentioned do not
reflect the correct cost or loss levels. Also, the T & D loss figures may be recalculated.
2.1.51 The loss assigned to the specific consumer should be as per the voltage category.
2.1.52 The format figures did not reflect a rational approach in its calculations, to arrive at the
different voltage levels cost or average costs. The approach that has been adopted seems

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to be without validation that true operating costs have been reflected. The petition should
negate the concept of Cost of Service process of tariff determination.
2.1.53 The cost of supply for all categories of consumers has been furnished in Form- 25 of the
ARR formats as Rs. 5.98 per kWh. As per the orders of Appellate Tribunal for Electricity
in Appeal Nos. 192 & 206 of 2010, the Tribunal has directed the State Commission to
determine the voltage wise cost of supply within six months from the date of judgment,
i.e., July 28, 2011, but TANGEDCO has not furnished the data. Therefore, the
Commission may issue orders to TANGEDCO to furnish the voltage wise cost of supply
before finalizing the Order.

Issue-7: Subsidy
2.1.54 The amount of Rs. 2,234.32 Crore as subsidy payable by the State Government appears
to be very small. TANGEDCO has used a very low level pricing of power for a set of
consumers. Therefore, appropriate methodology should be used by TANGEDCO instead
of Cost to Serve model.
2.1.55 The subsidy should be offered for the domestic consumers having a monthly
consumption of more than 500 units also.
2.1.56 TANGEDCO should be provided with the subsidy amount before the start of the
financial year by the Government of Tamil Nadu. The Government should pay the
subsidy towards domestic consumer to TANGEDCO on a quarterly basis.
2.1.57 The subsidy has been given as 150 paisa and 100 paisa per unit for the bi-monthly
consumption up to 100 and 200 units respectively, but there has been no provision for
subsidy for the first 200 units in the bi-monthly consumption exceeding 200 units and the
subsidy is minimal of 50 paise per unit above 200 to 500 units. Therefore, the subsidy
should be increased by at least Re. 1 per unit for the first 200 units for the consumers who
consume between 200 and 500 units bi-monthly.
2.1.58 Fixed charges and minimum charges (Rs. 110/-) should be reduced.
2.1.59 The subsidy should be provided for residents in huts using one bulb. Rs. 50 per month
should be collected from other consumers in huts.



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2.1.60 Issue-8: Cross SubsidyThe practice of cross-subsidies should be done away with. The
free and subsidized supplies to agriculture or economically weaker sections of society
should continue, but TANGEDCO should not divert electricity (in the event of a
shortage) to other consumers to cover its own deficit. The Supreme Court of India ruled
in the case of West Bengal Electricity Regulatory Commission Vs West Bengal High
Court and CESC Ltd., Kolkata that there cannot be cross subsidy from one consumer to
another.
2.1.61 The consumers below poverty line who consume below a specified level, say 30 units per
month, may receive a special support by way of cross subsidy. Tariff for such designated
group of consumers may be at least 50% of the average Cost of Supply. This provision
should be re-examined after five years.


Issue-9: Tariff for HT Industry
2.1.62 The industrial output in the state is already adversely affected due to power cuts. The
tariff increase should ensure un-interrupted power supply to HT industrial consumers.
2.1.63 Measures should be taken by TANGEDCO to increase the power supply to meet the
demand of Industry, either through spare capacity available within the State or through
procurement of power from other states.
2.1.64 The morning peak hour cut for industries should be withdrawn.
2.1.65 Demand charges may be uniform at Rs. 200 per KVA per month for HT consumers
instead of applying varying levels with high increases.
2.1.66 All HT consumers should be allowed to procure power under provisions of Open Access.
2.1.67 HT Consumers, availing power supply at high voltage are virtually consumers of
TANTRANSCO. TANGEDCO comes into picture only for metering and billing
purposes. Hence, a HT consumer has to bear the entire cost of the transmission line from
the Grid substation of TANTRANSCO to the consumption point, switching, protection
and the metering equipment and the utility incurs no capital cost. Maintenance of these
equipments is done by TANTRANSCO and the cost of which has been covered in the

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ARR of the TANTRANSCO. There is no expenditure towards Distribution. Therefore,
the demand charges should be lower.
2.1.68 The transmission loss at HT voltage is less compared to when supplied at 11 KV, thus,
the energy charges should also be reduced.
2.1.69 The energy charges should not be increased from Rs. 3.00 per unit to Rs. 5.00 per unit for
HT Tariff IA.
2.1.70 The industrial output in the state is already adversely affected due to power cuts. The
tariff increase should ensure un-interrupted power supply to HT industrial consumers.
2.1.71 Measures should be taken by TANGEDCO to increase the power supply to meet the
demand of Industry, either through spare capacity available within the State or through
procurement of power from other states.
2.1.72 The morning peak hour cut for industries should be withdrawn.
2.1.73 Demand charges may be uniform at Rs. 200 per KVA per month for HT consumers
instead of applying varying levels with high increases.
2.1.74 All HT consumers should be allowed to procure power under provisions of Open Access.
2.1.75 HT Consumers, availing power supply at high voltage are virtually consumers of
TANTRANSCO. TANGEDCO comes into picture only for metering and billing
purposes. Hence, a HT consumer has to bear the entire cost of the transmission line from
the Grid substation of TANTRANSCO to the consumption point, switching, protection
and the metering equipment and the utility incurs no capital cost. Maintenance of these
equipments is done by TANTRANSCO and the cost of which has been covered in the
ARR of the TANTRANSCO. There is no expenditure towards Distribution. Therefore,
the demand charges should be lower.
2.1.76 The transmission loss at HT voltage is less compared to when supplied at 11 KV, thus,
the energy charges should also be reduced.
2.1.77 The energy charges should not be increased from Rs. 3.00 per unit to Rs. 5.00 per unit for
HT Tariff IA.


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2.1.78 The machineries being used by 90% of the industries are fully non linear load and
polluting the Grid.
2.1.79 In accordance with section 62 (3) of Electricity Act 2003, TNERC may differentiate the
tariff on the basis of operating voltage.
2.1.80 The stipulation of minimum demand of 90% of the sanctioned demand should be
exempted for educational institutions.
2.1.81 TANGEDCO is levying demand charges at Rs. 300/KVA for the whole of the month,
when they only supply for 14 hours per day. The Commission may penalize
TANGEDCO when consumers do not get power supply as envisaged under Electricity
Act 2003, by fixing unreliability charge or non-performance charge which may be paid to
the consumers. This could be adjusted against the Regulatory Asset, if it is created and
so long as it unamortised.
2.1.82 TANGEDCO has requested to continue to keep the present billing demand in its petition.
Accordingly, in the case of two part tariff, the maximum demand charges for any month
will be levied on the KVA demand actually recorded in that month or 90% of the
sanctioned demand whichever is higher. However, in case of R&C measures, it is the
actual recorded maximum demand or 90% of the demand quota as fixed from time to
time whichever is higher. The present billing of 90% may be reduced to 80% as
prevailing in Andhra Pradesh.
2.1.83 Electricity consumption by labor welfare establishments like canteen, hostel, dispensary,
crche etc in HT premises are being treated as commercial use. TANGEDCO should
provide separate electricity meters for measuring the consumption at labor welfare
establishment so that it need not be charged as theft and the HT consumers should not be
penalized. Therefore, the consumption of such establishments (when not metered
separately) should be billed along with the HT consumption.
2.1.84 HT industrial consumers should be allowed to use at least 15% of their sanctioned
demand for the purpose of labor welfare measures. Separate meters should be installed to
meter the load when it exceeds 15% of the sanctioned demand and the LT tariff may be
charged for the excess demand.


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2.1.85 TANGEDCO should not demand 15% extra energy charges from a consumer
maintaining quality power at the point of common coupling with proper harmonic
equipment. Central Electricity Authority (CEA) have given power quality parameters for
the bulk consumers in their Notification No. 12/X/STD (CONN) GM/CEA (21-Feb-07)
(the Central Electricity Authority (technical) Standards for Connectivity to the Grid)
Regulations, 2007 in Part IV under the heading Grid Connectivity Standards applicable
to the distribution system and bulk consumers, CEA have sought compliance of the
following:
a. Total voltage harmonic distortion should not exceed 5%
b. Total current distortion should not exceed 8%
Hence, such extra charges should be levied only on those consumers who do not meet the
requirements of CEA.

TANGEDCO should notify in the Tariff Order, the reason for this 15% extra charges, as
notified in the old tariff order w.e.f. 16-03-2003 and an opportunity should be given to
the consumers to limit the harmonics within the values prescribed by CEA and get
exempted from this 15% extra energy charges.
2.1.86 Textile industry submitted that the Commission has unequally revised the tariff in the
Tariff Order dated 31-07-2010, and requested not to repeat it this time as it overloads a
few consumer categories.
2.1.87 TANGEDCO has made an allocation of 1% of the total units consumed towards
maintenance of canteen, rest shed, garden, RO plant, effluent treatment plant, residential
quarters and hostels etc., to be billed under HT Tariff IA and in case of excess, to be
billed under LT Tariff V (1) in Para 11.1.1. (viii). This move of TANGEDCO was
welcomed and there was a request that this be extended to 1.5% of the total units
consumed, when R&C measures are in force. Further, the following are the activities
integrated with the Industrial activity according to the various provisions under the
Factories Act, 1948 and Tamil Nadu Factories Rules 1950 and therefore, any industrial
consumer is required to be in compliance with the Statutory provisions:
a. Canteen (Section 46)
b. Shelters, Rest Rooms and Lunch Rooms (Section 47)
c. Creches (Section 48)
d. Garden and Greenery (Rules 52-A)
e. RO Plant for drinking water (Section 18)
f. CETP (TNPCB Norms)

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g. Borewell motors and well motors to satisfy the above purposes.
2.1.88 Printing industry, jewel merchants and the textile industry have requested that the tariff
should not be hiked and that the existing tariff should be continued.
2.1.89 The Commission may permit HT industries to draw upto 25% of the Maximum Demand
during evening peak hours instead of 10%.
2.1.90 The Commission may hike the tariff for big industries and foreign industries and Multi
National Companies (MNCs) instead of domestic consumers.
2.1.91 TANGEDCOs proposal of charging extra 10 paisa / unit from HT consumers whose
sanctioned demand exceeds 5000 KVA and not availing the supply at i.e. 33 KV, may be
made applicable only for future supply to new HT consumers.
2.1.92 Sufficient time of at least 5 years to be provided for change from existing level to new
voltage level supply. In the meanwhile, TNERC in its Draft Notification dated 01-12-
2011 in respect of Tamil Nadu Electricity Supply (6th Amendment) Code, 2011 wherein
Section 3 Categories of Supply Clause d & e, it was defined as follows:
d. Three-phase three wire supply at 11 KV or 22 KV depending on the voltage
level existing in the area of supply shall be provided for a demand limit up to 3
MVA or 5 MVA as the case may be. However, the minimum demand shall be 63
KVA.
e. The Consumer shall be provided supply at 33 KV for a demand exceeding 3
MVA and up to 10 MVA if the area of supply is fed through 11 KV system and if
the area of supply is fed through 22 KV system, supply at 33 KV shall be provided
for a demand exceeding 5 MVA and up to 10 MVA.

These provisions differed from the present proposal suggested by TANGEDCO.

Issue-10: Tariff for HT - II Category
2.1.93 TANGEDCO has proposed an increase of 100 paise per unit of energy supplied to HT
IIB (i) category for the private educational institutions and 50% hike in demand charges
from Rs. 200/KVA/month to Rs. 300/KVA/month, thus raising the present average
charge from Rs. 5.50 to Rs. 7.41 (for 650 KVA demand & 1,25,000 units monthly
consumption).


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2.1.94 Educational institutions have a very low load factor and majority of consumption is
between 9:00 am to 5:00 pm. For FY 2012-13, the increase in tariff is not in proportion
with the consumption as the Consumption by LT II category has been projected as almost
double of HT II category whereas expected revenue has been projected as equal.
2.1.95 The rate for supply of energy for film exhibitors has been proposed to increase from Rs.
4.50 to Rs. 6.80 per unit for cinema theatres under High Tension Category. As the lowest
rates of admission are fixed by the state government and due to poor state of film
exhibitors (because of competition from Cable TV and Satellite TV), the requested tariff
hike may not be accepted.
2.1.96 Continue the existing demand charge of Rs. 200/KVA per month and increase the energy
charges by 5% for HT Tariff IIA.
2.1.97 Private educational institution may be included in HT IIA category as the ultimate
objective of the educational institution is to impart knowledge to students, which is a
socially desirable service. The Honble Supreme Court of India in Case number Writ
Petition, (Civil) 317 of 1993 (TMA Pai Foundation Vs State of Karnataka) has ruled that
Reasonable Surplus (Funds collected by Education Institutions) to meet cost of
expansion and augmentation of facilities in educational institutions does not amount to
profiteering. Therefore it was suggested that private education institutions should come
under HT Tariff IIA.
2.1.98 Proposed extra levy of 20% on energy consumed during peak hours is strongly objected
by HT consumers. The proposed incentive of 5% rebate may be increased up to 20% on
energy consumption during night hours.
2.1.99 Private educational institution should not be differentiated from government institutions
with respect to tariff categorisation.
2.1.100 The proposed tariff structure for HT II (B) has been identical to HT Tariff III and it is
requested to be grouped under HT Tariff III.
a. Tariff applicability must encompass all allied utilities connected with the
educational institutions such as hostels, guest houses, canteen, laboratories,
conference hall, auditorium, indoor and outdoor stadium, water works, and other
supplementary services.
b. Extra levy for peak hour consumption have been objected on the account of being
study hours for the students for exams.

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c. The proposed rebate should be increased to 20%.
2.1.101 In Karnataka, there is no separate tariff for Government Educational Institutions. The
discrimination will lead to violation of Section 62 (3) of the Electricity Act 2003
regarding discrimination between the consumers and hence, there should not be a
separate tariff category for government and private educational institutions.
Issue-11: Tariff for HT Tariff III
2.1.102 The Commission is requested to have differential tariff for aviation and other commercial
activities such as shops, restaurants etc. If no separate metering is possible, than a
separate category other than HT Commercial can be proposed for Airports and composite
tariff can be determined for aviation and commercial activities. The ATE in its judgment
dated 22-07-2011 in Hyderabad International Airport Vs APERC has also given the same
findings.

Issue-12: Tariff for HT Tariff IV
2.1.103 Many service industries like automobile service centers, etc are brought under Tariff IV.
These industries should be brought under Tariff III B.

Issue-13: Tariff for Domestic

2.1.104 The hike in electricity tariff will greatly affect the consumers as the proposed tariff is
exorbitant and that the revision results in increase by about 100%.
2.1.105 Air conditioner users and UPS users should pay Additional Security Deposit.
2.1.106 The domestic consumers belonging to category I(A)- (a), (b), (c), (d) and (e) will end up
in paying extra 75%, 90%, 83%, 65% and 85% respectively over and above the existing
rates, after the proposed hike in domestic tariff.
2.1.107 Various combinations of energy charges for various types of slabs were suggested
2.1.108 Due to the power cuts, the domestic consumers are using inefficient Invertors, which
further consume a lot of power. As the efficiency of domestic UPS is 50% which is a loss
that results in increased subsidized domestic consumption. The increase in the failure of

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Distribution Transformers (DTs) of TANGEDCO has increased due to the poor quality of
power.
2.1.109 The slab system should be common for all consumers irrespective of total consumption
of electricity. TANGEDCO has proposed revision of Tariff for consumption of electricity
more than 500 units bi-monthly. It was submitted that the common slab system may be
implemented, without changing slab rates, based on total units consumed bi-monthly.
2.1.110 As per Electricity Act 2003, the Security Deposit amount is refundable to the consumers
if it is paid in excess of contract demand or it should be adjusted in two billing cycles. If
the contract demand exceeds the metered demand, the excess amount may be refunded by
the Board with interest before the due date of payment of third billing cycle. The
Commission may direct TANGEDCO for:
a. Levy of Additional Consumption Caution Deposit which can be adjusted in case
of disconnection of service in the event of any default in payment by the
consumer.
b. Initiate stringent recovery steps to recover long over dues.
c. Introduce a suitable Tax Saving Investment Scheme like Floating of Short term or
Long term Infrastructure Power Bonds or Certificates.
d. Resort to Differential Tariff Mechanism for end-user (like IT Corporate Majors)
of power back up gadgets like inverters and generators which also indirectly
contribute to the drain of power from the grid who can be differentiated from the
non users by adopting a suitably administered price mechanism.
2.1.111 Separate tariff may be given for the State Government and Central Government
employees.
2.1.112 Prepaid card should be introduced for the domestic consumers for the payment of
electricity in advance for the bi-monthly consumption.

Issue-14: Tariff for Hut
2.1.113 The existing sanction load for the BPL families is 110 watts (Bulb - 40 watts, Color TV
70 watts). The proposed additional load as per Government of Tamil Nadus
announcement for the BPL families, would be additional 970 Watts (Mixi 750 Watts,
Wet grinder 150 Watts, and Table Fan 70 Watts). For a total load of 1080 watts, the per
day consumption by the connected load is as follows:


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TV 5hrs x 70W 0.35 kWh
Fan 8hrs x 70W 0.56 kWh
Mixi 0.5hrs x 750W 0.375 kWh
Wet grinder 1hr x 150W 0.15 kWh
Bulb 6hrs x 40W 0.24 kWh
Approximately 1.7 kWh

Annual consumption per Hut SC would be 1.7 x 365 i.e. 621 units. The minimum
average generation cost of electricity with TANGEDCOs own generation is 350 paise.
Therefore, the compensation by Government of Tamil Nadu to TANGEDCO per annum
will amount to Rs. 2173.5 per SC.
2.1.114 TANGEDCO has projected the rise in consumption of huts (BPL) as 424 MU whereas
the actual consumption is expected to be much more because of color TV, fan, Mixi,
grinder and laptop. The Commission has already stated in its Tariff Order of 2003 that for
Huts and Agricultural services a separate policy has to be evolved and followed for all
services to be metered. Hence, the Commission may direct TANGEDCO for undertaking
implementation of 100% metering, collection and disconnection mechanism.
2.1.115 The load limit to BPL category may be increased to 110 watts. Meters may be fixed and
consumption of electricity by BPL category consumers up to the limit of 100 units bi-
monthly may be free. Consumption beyond 100 units may be charged at regular tariff.


Issue-15: Tariff for Street Lighting and Water Supply
2.1.116 TANGEDCO may equip street lights with Dusk to Dawn switches so as to save
electricity.
2.1.117 Electronic chokes may be introduced by TANGEDCO instead of conventional ones.


Issue-16: Tariff for LT Educational Institutions & Recognized Hospitals

2.1.118 Under LT Tariff IIB, the pricing parity between the government educational institutions
and private educational institutions is objected by the private educational institutes. The

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Government is promoting subsidies/cross subsidies by providing concessional rates to its
own institutions.
2.1.119 Objection was raised on the increase in the fixed charges by the HT II category
consumers. Instead, it was suggested that the slabs may be defined keeping 10 KW of
contracted load instead of connected load as one slab and the rate should be fixed at Rs.
10 per slab per month. There should be separate rate for fixed charges for LTCT services.
2.1.120 Private Educational institutions have objected to the tariff hike.
2.1.121 There should not be fixed charges for LTCT services as it has no relevance. Therefore, it
may be dropped.

Issue-17: Tariff for Places of Public Worship
2.1.122 Meditation centers may be considered in the category of Actual Place of Public Worship.

Issue-18: Tariff for Tiny Industries
2.1.123 LT Tariff IIIA (i) and IIIA (ii) may be rationalized into a single category.
2.1.124 TANGEDCO has provided the minimum load under IIIA categories as 10 HP in its
petition. Most of the Micro industries with minimum work force have been operating on
a load range of 15 HP to 20 HP. It was suggested that LT Tariff IIIA may be applied to
loads up to 20 HP.
2.1.125 The charges may be computed on actual power consumed. The current rate of fixed
charges for Tariff IIIA & IIIB is Rs. 30 per connection per month. TANGEDCO could
have asked for a hike to Rs. 100 per connection per month, however, it has proposed a
change to per KW basis for a charge of Rs. 100 per KW per month. The proposal to
change the very basis of the charge from Rs. /connection to Rs. /KW may be denied.
2.1.126 TANGEDCO has requested to levy demand charges (fixed charges) at the rate of Rs.
50/KW for Tiny Industries (LT IIIA), Rs. 100/KW for LT Industries and Rs. 120/KW for
LT CT services per month. The Commission may reject the proposal of tariff hike.


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2.1.127 TANGEDCO has requested to increase the energy charges for Tiny Industries in two fold
from the existing rate. The Commission may not increase the energy charges and if
needed, the increase may limit to Rs. 0.50 per unit.
2.1.128 The proposed increase of 10% in energy charges for LT III (B) category (i.e. from Rs.
5.00/unit to Rs. 5.50/unit) may be uniformly charged to all categories of consumers
including LTCT services.
2.1.129 Flour mills submitted that due to the presence of HT consumer units near their site, they
need to pay TANGEDCO Rs. 2000 for the damage due to natural accidents in the HT
line. It is requested to exempt the damage charges for the damages due to natural
accidents.
2.1.130 Silver chain makers which were earlier categorized under LT Tariff IIIA (1) have
requested for the same tariff to continue.
2.1.131 A separate dedicated power station may be setup in Tirupur for the benefit of knitwear
sector.

Issue-19: Tariff for Power Loom
2.1.132 The concessional tariff is allowed to cottage, micro and power loom consumers with the
intention of helping poor self-employed consumers. However, these concessions are
being misused. Further, it submitted that Auto Loom consumers that have been
categorized under the Power Loom category have been enjoying concessional tariff rates
and subsidies from Tamil Nadu Government.

Issue-20: Tariff for LT Industries
2.1.133 For the LT consumers, TANGEDCO has proposed an average increase of 59% energy
charges while the range for individual consumer category is 0% for bulk supply and
589% for agriculture. In terms of absolute values of energy rates, against a existing rate
of 25 paise per unit for agriculture and 666 paise per unit for LT commercial category,
the proposed rates are 175 paise for agriculture and 872 paise per unit for LT Industries.
In monetary terms, TANGEDCO has proposed to collect Rs. 7,260.76 Crore through
proposed revision, out of Rs. 9,741.01 Crore.


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2.1.134 Objections submitted on LT CT services are:
a. The fixed charges have been increased from Rs. 60 for two months to Rs.
240/KW/month which is a 400% increase.
b. The energy charges have been increased from 500 paise per unit to 600 paise per
unit. This is 20% increase in the rates. Hence, the slab charges are requested to be
retained at the existing levels.
c. The monthly minimum charge is escalated by 250%.
Therefore, the LT CT based industries will have to bear 82.30% of the entire increase in
charges, under category III of the LT tariffs.
2.1.135 The fixed charges should not be related to MD or connected load and should be retained
at the existing energy charges.
2.1.136 The export units may be exempted from tariff hike so that they can sustain themselves in
the global market.

Issue-21: Tariff for LT Agriculture
2.1.137 For calculation of revenue from sale of power by Agriculture category, the connected
load may be considered as submitted by consumers for the replacement of energy
efficient motors.
2.1.138 The unauthorized additional load may be regularized by collecting Rs. 10,000 per HP.
This amount may be utilized for improving the TANGEDCOs infrastructure.
2.1.139 TANGEDCO has admitted that the agricultural consumption has been 100% free. There
has been no road map submitted on fixing meters in the agricultural services. The
Commission in its Tariff Order 3 of 2010 dated 31-07-2010 directed TANGEDCO that a
time bound program for 100% metering needs to be worked out and submitted to the
Commission. It was requested that necessary directions should be given to provide meters
for all services.
2.1.140 The farmers who are having above 10 acres of land have to be supported for constructing
a storage tank to avoid lift irrigation.


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2.1.141 As observed by the Commission earlier in its Tariff Order 3 of 2010 dated 31-07-2010,
the gap between the expenditure incurred by TANGEDCO and the subsidy paid by the
government is the main reasons for the poor financial health of TANGEDCO.
2.1.142 As provided in the Electricity Act 2003, the Commission should safeguard consumers
interest and recover the cost of electricity in a reasonable manner. The Commission
should pass appropriate orders directing the utility to recover the cost of electricity, if not
from consumers, then from the Government since the Government itself is responsible
for the free supply of electricity as per Section 65 of the Electricity Act which states:
Provided that no such direction of the state Government shall be operative if the
payment is not made in accordance with the provision contained in this section
and the tariff fixed by the state Commission shall be applicable from the date of
issue of orders by the Commission in this regard.

2.1.143 For fixing meters to free services in Agriculture sector, a sum of Rs. 2,000 Crores will be
required which may be born by Government of Tamil Nadu.
2.1.144 The Free Electricity Pump Set scheme should be stopped.
2.1.145 The water from agriculture connection should be permitted to be used for poultry and
feeding animals. There should not be any penalty for using the agricultural water for
animal husbandry, sericulture etc.
2.1.146 Enforcement squads are misusing the provisions relating to theft of energy and are
charging commercial tariff for agriculturists. There may be a ceiling of 25,000 to 35,000
numbers of cattle to bring an agricultural service connection within the meaning of
commercial category.
2.1.147 The ex-service men squad employed by TANGEDCO has booked farmers maintaining
cows and goats in their agricultural field under the theft of energy which should not to be
done as Government also gives free cows and goats to the farmers.
2.1.148 The electricity used for Integrated Farming may not be considered as Electricity Theft.




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Issue-22: Tariff for Commercial
2.1.149 TANGEDCO has proposed to levy uniform 1% of consumption at LT Tariff V {page 129
clause 11.1.1 (viii)}, for usage of the energy for other purposes, irrespective of actual
usage. This proposal may badly affect the major consumers like Foundries. Applying 1%
of the energy to the LT Tariff V would be irrational for the industries whose consumption
of the energy for other purposes is nil or very minimal.
2.1.150 The marriage/community halls should have 2 service connections for indoor and outdoor
consumption and the lavish illumination should be charged at appropriate tariff.
2.1.151 The Commission may re-categorize telecom towers under separate sub-category within
the existing commercial category.
2.1.152 The tariffs currently charged to consumers falling under the Commercial category in
Tamil Nadu are on the higher side when compared to various states in India.
2.1.153 The Commission has been requested to consider the proposal of compulsory installation
of AMR meters and roll out of consolidated billing for large consumers with multiple
connections.
2.1.154 The Commission may consider reducing the tariff proposed for the commercial
consumers.
2.1.155 There is no definition of commercial tariff in the Tariff Order of 31-7-2010. Therefore,
those consumers who do not fall in the tariff slabs of LT I to IV may not be brought
under the Commercial category.
2.1.156 The proposed fixed charge under LT Tariff V should be charged at a rate of Rs. 50 per
month plus Rs. 5 per slab of 10KW of motive power (connected load) per month taking
grinder, A/C and water heater under motive power. Separate rate for LTCT services may
be denied.








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Issue-23: Tariff for LT Temporary Supply
2.1.157 Presently, for any power used for construction activity by an existing consumer, it is
classified as power theft/misuse. It is suggested that the procedure may be modified and
TANGEDCO should accept the application for permission for the extra power
requirement for the construction activities. The extra charges, if any, may be collected in
the existing meters. There should be no requirement for applying fresh temporary
connections.
2.1.158 The compounding fees should not be collected for the misuse of the energy and instead,
the consumer should pay the difference in tariff for misuse of energy.
2.1.159 Proposal for applying LT Tariff VI category for the construction activities which are
carried out by HT Category consumers with the purpose of expansion or improvement or
replacement for the infrastructure connected with the main utility for which HT supply
has been availed, contradicts with the applicability of HT Tariff III submitted by
TANGEDCO the new proposal which also dealt with construction activity.
2.1.160 The lavish illumination has to be discouraged during R&C period. The tariff for lavish
illumination should be more than excess demand and energy charges payable for
violation of quota.
2.1.161 The temporary power usage for construction activity for temple functions, public
meetings, exhibitions, conferences of political parties and religious discourses, etc., are
different from the construction activity which would become a part of main building after
completion. Hence, a separate category within Temporary Supply may be required.
2.1.162 The power theft by political parties in public meetings and functions should be
discouraged by TANGEDCO through a minimum charge of Rs. 5000 towards Madras
Electricity Supply (MES) charges.
2.1.163 The existing rate of Rs. 10.50 per unit should be reduced to Rs. 9.00 per unit which
would be 50% more than the LT commercial tariff of Rs. 6.00 per unit as suggested.
TANGEDCO has not mentioned the unit of the connected load or contracted demand in
its submission. The per day basis approach may be replaced by the fixed charge per
month adopting a charge of Rs. 10 per KW since the consumer is also paying the cost of
extension to the supply agency.


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2.1.164 The monthly minimum charge has no relevance to LT temporary supply and hence it may
be dropped.

Issue-24: Free/Concessional Tariff
2.1.165 As per National Tariff Policy, the minimum and maximum of tariff should be +/- 20% of
the average cost of energy. The free energy to huts and agriculture is against the Tariff
policy. Power supply to huts should be metered and ceiling for consumption of electricity
should be specified for these categories of consumers. Agricultural supply should also be
metered and should be rationalized with respect to the area of agricultural land with
consumption ceiling.
2.1.166 The Government may pay the cost of energy incurred by TANGEDCO for free
electricity, wherever provided, for agriculture and huts, on a quarterly basis.
2.1.167 The concession given to consumers whose bi-monthly consumption is up to 100 units is
proposed to be withdrawn i.e. on fixed rates and the rate of Rs. 1.50 per unit has been
proposed to be charged throughout, resulting is the consumer paying a bi-monthly
minimum of Rs. 110 instead of Rs. 40 charged earlier. The tariff may be hiked for the
consumers who consume 1000 or 2000 units per two months.
2.1.168 Ice Producers have sought for concessional tariff.
2.1.169 The Steel plants should be exempted from the 15% extra energy charges and limit the
harmonics within the limits prescribed by Central Electricity Authority (CEA).
2.1.170 Salt manufacturing industries, Non Government Organizations, Rice Mills, CMC Vellore
and hospitals attached to educational institutions have requested for concessional tariff.
2.1.171 Electricity generation tax should be waived as long as R&C measures are in force.

Issue-25: Free Power
2.1.172 TANGEDCO should provide free power to the farmers who are having more than 10
acres of land and should be encouraged to install solar power panels. The free power for
farmers having 5 to 10 acres of land should be charged at a rate of 50 paise per unit.


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2.1.173 The number of free connections to the farmers has to be restricted to only one service
while all other remaining services should be charged.
2.1.174 The concept of free power should be dropped and there should be no exemption in
electricity tariffs to any category of consumers.
2.1.175 Free power to horticulture service connection for farmers may be provided.

Issue-26: Generation
2.1.176 TANGEDCO may limit its activities in respect of its own generation. Power purchase by
TANGEDCO may be monitored and controlled by the Commission.
2.1.177 The seven generators which were classified as captive generators were exempted from
the payment of cross subsidy charges. Their status may be verified again and cross
subsidy charges may be recovered from these consumers.
2.1.178 TANGEDCO has lost Rs. 1500 Crore in the dispute between GMR and PPN.
TANGEDCO may try to lodge a claim for this loss from both the parties.
2.1.179 The Kudankulam Nuclear power project may begin power generation to meet the
shortage of 1500 MW in the State.
2.1.180 The energy generation by TANGEDCOs thermal power stations has dropped by 2000
MUs for the year 2010-11 compared to 2009-10 which amounts to Rs. 600 crores of loss.
The Commission may ask TANGEDCO to find out the reasons so that the further
generation loss could be avoided.
2.1.181 There has been heavy loss incurred in the Fixed Cost and Variable Cost in respect of
power purchased from Independent power Producers except Pillaiperumalnallur.
TANGEDCO may take necessary steps to reduce the cost.
2.1.182 The tariff for GMR, PPN, Samalpatti, Madurai and ST CMS has not been regulated. The
fixed cost of IPPs should come down from 24% of capital cost to approximately 9% after
a period of 10 years. The O&M cost in fixed cost component of IPP tariff should be
checked.


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2.1.183 TANGEDCO should follow a strategy to meet the demand by having more power
stations than actually planned, and may exploit the full potential of non conventional and
renewable sources of energy as also mobilize private investment.
2.1.184 TANGEDCO may promote jatropha/bio-diesel cultivation to be used as fuel for
generation of power.
2.1.185 TANGEDCO may add sufficient capacities to cater to the future demand.
2.1.186 The Basin Bridge plant may be converted to Combined Cycle plant.
2.1.187 TANGEDCO may prioritize local small scale industries (SSI) which are not having
sufficient supply of electricity over the multinational companies for giving new
electricity connections. The new connections to the multinationals sectors should be
continued but the generation capacity should be increased proportionately.
2.1.188 The electricity tax at the rate of 10 paisa per unit on self generation of electricity from
generators may be withdrawn.
2.1.189 Big shopping malls and Business houses should install their own non-conventional
electricity production units.

Issue-27: Power Purchase
2.1.190 TANGEDCO may purchase power from affordable generating stations except the power
from Kayangulam.
2.1.191 The power purchase from non conventional energy sources may be restricted to statutory
limits, if it is not affordable.
2.1.192 TANGEDCO is firming up the infirm power from wind generations with a very high
reactive component, causing serious losses to them. TANGEDCO may account for the
quantum of losses under a separate head. TANGEDCO might have made losses by way
of banking of 6000 MW of infirm power in 10000 MW grids with high technical losses
by way of accommodating very high reactive component.


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2.1.193 TANGEDCO should not purchase power above Rs. 3 per unit. Instead, it is better to shed
load instead of such high purchase.
2.1.194 HT consumers are allowed to enter into power purchase agreements with potential
suppliers of power. Medium and small industries have requested for permission to source
power from other states. Power generators may be given permission to sell power to other
states under open access (Inter-state Open Access).
2.1.195 In 2009-10, 14500 MUs was purchased from open market. Private generators which
constitute 19% of the total power purchases by TANGEDCO have swindled 50% of the
total revenue earned by TANGEDCO. TANGEDCO has bought power at Rs.15 per unit
from the open market, which the Commission may regulate.
2.1.196 TANGEDCO started incurring losses from the year 2002-03 amounting to Rs.1,000
Crore and gradually increased up to the present level of Rs.53,000 Crore. This is because
of high power purchase cost from IPPs, traders and open market. The Commission may
regulate the private power purchase as per the provisions of the Electricity Act, 2003.
2.1.197 The procedure of involving FPAC is unnecessary as the tariff determination process is an
annual exercise which may take care of fuel price adjustment during the year.
2.1.198 The hydro power generation from Pycara and Kundah projects costs 20 paise per unit as
all its fixed cost has been recovered. Therefore, this source should be earmarked for
agricultural sector.

Issue-28: Renewable Energy
2.1.199 The barrier to wind power development may be removed (including infrastructure for
evacuation) and an enabling regulatory and policy environment for investments in this
sector should be created.
2.1.200 The consumers having contract demand more than 10 MVA may generate electricity up
to 5% to 10% of the contract demand which should gradually increase to 25% from
renewable sources.


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2.1.201 Banking of wind energy may be dispensed with to avoid serious losses. Demand side
management may be enforced for the wind mills by levying common power factor
compensation.
2.1.202 A separate company may be formed for cheap power sources like hydro power station
which should sell power to TANGEDCO at non conventional energy cost and utilize the
fund to compensate weaker section like hut and agriculture.
2.1.203 Solar power generation should be promoted. Government of Tamil Nadu may take
initiatives and offer subsidized rates to boost solar energy use. The usage of solar energy
to power the domestic consumers and schools may be promoted as is done in Karnataka.
2.1.204 The power generation from wind mills may be enhanced. The power generation potential
from Courtrallan falls may be examined for hydro electric power scheme.
2.1.205 The Commission may direct TANGEDCO to procure additional power from wind energy
generators or alternatively allow to bank the same for a longer duration as third party sale
is technically restrictive.
2.1.206 Manufacturing & selling of storage electric water heaters may be banned. Instead, solar
water heater should be promoted. Similarly, usage of solar water heating system for
colleges, big canteens for the hot water usage for cooking purpose may be promoted.
2.1.207 There should be no sales tax for LED lighting systems, solar PV panels, and solar water
heaters. The concession of tax percentage for domestic appliances should be according to
star rating approval.
2.1.208 Green houses may be promoted by lowering the power tariffs for such type of houses.

Issue-29: Energy Audit/ Demand Side Management / Energy Efficiency
2.1.209 TANGEDCO has not been checking the correctness of Current Transformers/Power
Transformers and meters provided for the feeders.
2.1.210 Under the Energy Conservation Act 2001, power generation, transmission and
distribution are designated consumers for energy audit, whereas, TANGEDCO has not
undertaken any such audit.


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2.1.211 TANGEDCO may undertake measures to check loss in transmission/theft and install
meters in huts (BPL) so that excess energy consumed over the allotted free units could be
checked and properly accounted.
2.1.212 TANGEDCO may have a full time Member in charge of DSM and this activity may be
given same importance as Generation and Distribution.
2.1.213 The Bachat Lamp Yojna may be implemented throughout the State. It is also requested to
constitute a high level local experts committee in all the districts for assessing the
potential of energy savings and implementing the recommendations in a phased manner.
2.1.214 In street lighting and Government offices, incandescent lighting may be replaced with
efficient fluorescent lamps (CFLs).
2.1.215 Energy efficient pump sets should be distributed to farmers replacing their old pump sets.

Issue-30: Time of Day Tariff and Extending evening peak hours
2.1.216 It was appealed to the APTEL that the morning peak hours have been set between 6 am
and 9 am without any study or statistics. The Regulations in this regard provide for 6:00
am to 9:00 am as the morning peak and 18:00 hours to 21:00 hours as the evening peak.
APTEL has accepted this Regulation because the Commissions Regulations provide for
specific timings. However, in TANGEDCOs petition, the evening peak is sought to be
revised to 18:00 hours to 23:00 hours. TANGEDCO has not provided any justification for
the change sought for. Therefore, the Commission may maintain the Peak hour from
morning 6 am to 9 am and evening 6 pm to 9 pm.
2.1.217 Peak hour charges are collected at 20% whereas the incentive for consumption during
10:00 pm to 5:00 am is provided at 5%. The night shift allowance (incentive for night
shift consumption) may be increased to 20%.
2.1.218 Extending of evening peak hours has been objected by the consumers on the account of:
a. There have already been R&C measures in place whereby TANGEDCO has allowed
industries to draw only 10% of the eligible quota during the evening peak hours.
b. By extending peak hours, TANGEDCO has proposed to levy additional 20% of the
tariff for the two additional hours. There has been no proper justification for
extending the evening peak hours.
c. The rebate for consumption during night hours will be reduced by one hour.

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d. The proposed change will increase the overall power cost for the industries.
2.1.219 The night hour concession may be increased by 10% for the months of June to October to
encourage consumption at night hours.
2.1.220 TANGEDCO has provided an incentive of 5% on the energy charges being used between
22:00 hrs to 05:00 hrs. The industrial consumer may loose its shift production this way,
thereby incurring huge loss and increasing the cost. Maharashtra State Electrcity Board in
1984 has announced such a scheme with 23 paisa per unit as concession which was a
failure.
2.1.221 Peak hour tariff and night hour rebate may be treated on equal footing.

Issue-31: Retail Tariffs
2.1.222 Varieties of consumers avail access to power and each consumer has different affordable
concerns for the price to be paid for energy consumed. TANGEDCO being a commercial
organization is eligible to earn 14% return on their equity. TANGEDCO is not concerned
about the ability to pay of consumer. TANGEDCO has proposed an extraordinary
increase in tariff of nearly 100% for HT consumer and 63% for LT consumer.
2.1.223 If the Government is directing such supplies (under Section 65 and or Section 108 of the
Electricity Act 2003) the Commission may instruct the Government to provide for the
grant of the deficit too.
2.1.224 The retail tariff for such consumers who fall under the category of free or subsidized
supplies must be determined by the Commission truly and meticulously, so that the
consumers do not suffer any part of the burden of such supplies. About 22% of the total
consumption in Tamil Nadu is falling under this category.
2.1.225 Industrial and Commercial classes of consumers are under burden because of cross-
subsidy.


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2.1.226 Introduce KVAH billing for LT and HT consumers so that TANGEDCO can get
additional revenue without investment, which may also enable optimum utilization of
transformers and related equipment. . Already few states in India have implemented this
approach and recently Andhra Pradesh has also implemented KVAH billing for HT
consumers.

Issue-32: Power factor Incentive
2.1.227 TANGEDCO is levying low power factor surcharges in respect of HT & LT services,
when the power factor falls below 0.90 & 0.85 respectively. It is suggested that the
incentive for maintaining power factor above the minimum required level may be
considered as given below. As per the APTEL Order, it was prayed in front of the
Commission to provide Power Factor incentive as below:

For HT Services maintaining
above 0.95 to 1.0
A rebate of 1% of Current
Consumption charges for every
increase of 0.01 in power factor
from 0.9 to 1.0
For LT Services maintaining
above 0.90 to 0.95
A rebate of 1% of Current
Consumption charges for every
increase of 0.01 in power factor
from 0.85 to 0.9
For LT Services maintaining
from 0.95 to 1.0
A rebate of 2% of Current
Consumption charges for every
increase of 0.01 in power factor
from 0.95 to 1.00
2.1.228 The power factor incentive should be reintroduced for the industry which was withdrawn
in July/August 2010 as it may help efficient consumers of energy.

Issue-33: Wheeling Charges
2.1.229 TANGEDCO has proposed to increase the Wheeling Charge from the existing 14.74
paise per unit to 20.80 paise per unit for 2011-12 and 19.84 paise per unit for 2012-13.
This increase, as presented by TANGEDCO in the petition is due to the increased cost of
distribution network incurred by TANGEDCO.


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2.1.230 The proposed reduction in wheeling loss has been objected as the reduction in wheeling
loss has been carried away by the increase in wheeling charge.

Issue-34: AT&C Losses
2.1.231 Out of the total electricity distributed, around 22% of the total consumption in the State
has not been metered. Steps may be taken to measure the total losses to calculate the
actual T&D loss.
2.1.232 Strict police action may be taken against the people using hooks to pilfer electricity from
the transformers.
2.1.233 The transmission and distribution loss has remained static at 18% against 17% in 80s and
90s. TANGEDCO may use one size conductor for LT and one size conductor for HT
instead of various sizes.

Issue-35: Power Supply
2.1.234 Though TANGEDCO has announced 2 hours mandatory power cut, the time of power
cut exceeds 5 to 6 hours. Thus, there is production loss to Medium and Small Enterprises
(MSE). No remedial measures have been taken by TANGEDCO in this regard. A Weekly
power holiday may be introduced dividing Tamil Nadu into 6 regions and continuous
uninterrupted power supply may be maintained for 5 days a week.
2.1.235 Due to frequent power shutdown, following issues were presented:
a. Due to scheduled and unscheduled load shedding, each switching creates
switching surges which is injurious to the equipment. It was submitted that a lot
of failure of equipments due to switching (especially sensitive electronic
components).
b. TANGEDCOs HT breaker life has reduced drastically, which would result in
heavy expenses for replacement of all existing breakers within a short time.
Breakers are rated for number of mechanical operations at No Load but
TANGEDCO has switched off the breakers at the time of load conditions. Hence,
the average operating cycle has reduced than the manufacturers recommendation.
c. Frequent power cuts have also resulted in failure of winding in the distribution
transformers due to the voltage transients and high inrush current. Most of the
industries availed additional loads to run the existing industry fully or up to 90%
by showing additional machineries. The purpose of 20% power cuts becomes
meaningless and TANGEDCO has been requested to impose scheduled and

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unscheduled power cuts during the day times. Power cut to all HT industries was
requested to increase by 5% to 10%. The norms for additional demand sanctioned
should to be stringent in sanctioning and additional demand has to be given only
for expansion of machineries with proof.
2.1.236 The hospitals responsible for health of citizen may be given uninterrupted power supply.
2.1.237 TANGEDCO has proposed to give supply only at 33 KV if the sanctioned load is
between 5000 KVA and 10000 KVA and 110 KV or 230 KV supply to be effective only
if the demand exceeds 10000 KVA. The Objectors suggested that this change maybe
made applicable for the future supply to the new HT consumers.
2.1.238 The Commission has approved 40% power cut and 2 hours load shedding including
restriction to use power during hours of 6:00 pm and 10:00 pm in the Order No. MP 42 of
2008 dated 28-11-2008, which TANGEDCO has violated and extended the load shedding
to more than 8 hours a day. Therefore, it has rendered itself for the consequences under
Section 24 of the Electricity Act 2003.

Issue-36: Surcharge on Welding Power Supply
2.1.239 Presently, 15% surcharge on welding power supply is being levied. This practice has
started due to non maintenance of power factor earlier. Now, since the power factor is
maintained and levy of penal charges are in force, there should be no necessity to levy the
additional surcharge.
2.1.240 Welding surcharge is not levied in any other part of the country. Therefore, it is requested
that the same may be followed in TANGEDCO.

2.1.241 Welding surcharge is levied only for IIIB category. This charge should be levied on other
categories like Tariff VI (temporary supply) and IIB (Educational institutions like ITI,
Diploma & Engineering Colleges).

Issue-37: Levying of Extension estimate cost
2.1.242 TNERC has already approved for levying estimate cost for effecting the supply to the
intending consumers, which TANGEDCO has not implemented till now.


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2.1.243 A flat rate may be collected as estimate cost for all the extension category works other
than IB & IV (other than RSFS Category).

Issue-38: Quality of Power
2.1.244 The quality of power may be improved so as to have better life of installations at
consumer end. The power cut may be uniformly enforced in the urban and rural areas
through out the State without affecting the Industrial development.
2.1.245 The permissible AT&C and T&D losses may be specified by TNERC without comparing
with the National Average power losses so as improve the system by TANGEDCO which
will improve the power quality and the availability of power.

Issue-39: Metering
2.1.246 The meters being used are not standardized as per TANGEDCO requirement. Meters
provided at 91,000 distribution transformers at the cost of Rs. 91 Crore was a redundant
exercise because of insufficient manpower.
2.1.247 The electricity consumption may be noted monthly instead of bi-monthly to avoid the
upward trend in the energy charges in the tariff slab.
2.1.248 The Commission may call for the following details of the amount collected by vigilance
department to get more information on issues based on end use classification of tariff:
a) Unauthorized use of electricity (change in tariff classification)
b) Theft of energy (i.e. tampering, by-passing meters)
c) Details of expenditure incurred by vigilance department

2.1.249 It was suggested that Commission may switch to voltage level based tariff.
2.1.250 The Commission may direct TANGEDCO to notify the meter reading once in two month
as the meter readings are taken by TANGEDCO staff over and above 70 days.
2.1.251 The old meters may be replaced by new meters.
2.1.252 The subsidy is provided for the value Rs. 10 per month under the Hut Service scheme
One Light for One Hut by Tamil Nadu Government. However, in many huts, grinding

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is done commercially. Thus, the hut and power loom connections should be properly
metered.
2.1.253 The Commission may consider installation of Static meters with demand recording
facility in the service connections given under LT Tariff IIIA (1) and LT Tariff IIIA (2).
2.1.254 Power supply to the domestic consumer may be strictly monitored in a way. A second
supply to the same house may be given in case of separate entry and kitchen for tenants.
2.1.255 The overcharging of tenants by the house owner is an offence and may be punished under
section 142 and 146 of the Electricity Act 2003. Tenants may be provided with a separate
meter.

Issue-40: Economic and Efficient Operational Aspects
2.1.256 Power may not be purchased from Ennore TPS as its specific fuel consumption is 1.17
kg/kWh and auxiliary consumption is 14.48%. The coal meant for Ennore TPS should be
diverted to NCTPS, which will enhance the performance of NCTPS.
2.1.257 The Commission may fix a deadline for segmentation of TANTRANSCO and
TANGEDCO into SLDC and Sub-SLDC.
2.1.258 The HT: LT ratio has been almost same for the past few years. No HVDS system has
been introduced in a substantial manner. Therefore, transformer failures are increasing.
2.1.259 TANGEDCO may concentrate on R-APDRP scheme in high density areas, so that the
losses can be contained.


Issue-41: Request for Separate Category
2.1.260 Health care service providers are service sectors and may not be considered as
commercial. As per Supreme Court judgment in 2005, with respect to a case filed by
Madhya Pradesh Electricity board, it was stated that Health Care providers should not be
treated as commercial entities.


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2.1.261 Addiction treatment and rehabilitation centres for alcohol and drug dependents requests
for change in the tariff category from Commercial and may be provided concessional
tariff.
2.1.262 TANGEDCO has proposed to consider the Information Technology Enabled Service
(ITES) industries as different from Information Technology industries by fixing the tariff
under the classification as Commercial while treating IT industries as Industries. In
this regard, it is stated that the differentiation is against the mandate in Section 62(3) of
the Electricity Act 2003 and contrary to letter issued by TANGEDCO to the Commission
dated 12-4-2010 and IT policy framed by the Govt. of Tamil Nadu. Clause 9.5 of
Information Communication Technology (ICT) polity, 2008 states , Tamil Nadu
Electricity Board will provide power supply for low tension units as per LT Tariff IIIB
and for high tension units as per HT Tariff IA to IT industries setup in IT-ITES parks or
in stand-alone locations and also ensure the quality of power as required by the industry.
For the purpose of power tariff, IT (as defined in Para 5, 5(a), 5(b) and 5 (c) of this
policy) maintenance and servicing units and hardware units will be treated as Industrial
and not Commercial consumers and electricity tariff as applicable to Industry Consumers
will be charged.
2.1.263 The Commission in its order dated 31-07-2010 stated that the tariff for IT services/PCP
may be continued in HT Tariff IA and LT Tariff IIIB and for IT Enabled Services, tariff
under HT Tariff III and LT Tariff V would be applicable.
2.1.264 Charitable institutions have sought for the change of tariff categories to LT Tariff IIC for
the meditation hall, dormitories and the offices.
2.1.265 LTCT connections catering to residential complex consisting of kitchen, canteen, staff
quarters, guest blocks, toilet blocks, training centers, administrative blocks etc have
requested for tariff under LT Tariff IC.
2.1.266 100% free schools that are run by charitable institutions and which do not receive any
Government grants may have a separate tariff slab and tariff may be charged at 50% of
proposed domestic rates.
2.1.267 National Highway Authority of India (NHAI) and the contractors have requested to
change the tariff category of National Highway maintained street lights from Tariff V to
IIB (i).


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2.1.268 A separate category of Aquaculture tariff may be introduced and Pisciculture should be
introduced.
2.1.269 Job works in computer typing in small towns have requested to change the tariff category
from LT V to LTIII A (1).
2.1.270 Orphanages have requested change of tariff from LT II B (2). To LT I A
2.1.271 Many guesthouses, gents hostel, ladies hostel have come up in residential building for
which they do not pay any commercial charge and continues to pay subsidized domestic
tariff. A separate category of tariff is requested for such PGs, hostels.
2.1.272 Ice manufacturing units may be charged under HT Industrial IA instead of HT
Commercial Tariff III.
2.1.273 The Cellular towers who use green energy have requested to be classified under bulk LT
Consumer slab.
2.1.274 Fishing Harbor have requested to be charged under Industrial Tariff.
2.1.275 Sericulture, floriculture, raising fruit fodder and waste land development have requested
to change their tariff from LT Tariff IIIA (1) to Tariff IV.
2.1.276 MSME industry has requested to change the tariff category from LT Tariff V to LT Tariff
IIIB.
2.1.277 Residential quarters of staff of hotels have requested to be considered under LT Tariff IA
instead of LT Tariff V.
2.1.278 Poultry and jewellery manufacturers have submitted to change the tariff to LT Tariff IIIA
and Tariff IIIB respectively.
2.1.279 Yoga meditation centers have requested for change of tariff category to LT Tariff IC.
Textile industry has requested for a separate tariff.





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Issue 42: Objections/Suggestions by Southern Railways
2.1.280 The cross subsidy charged to railway traction is proposed to be increased from 15.37% in
2011-12 to 46.40% in 2012-13.
2.1.281 Demand and Energy charges for EHT categories may be fixed at a rate lower than those
for corresponding HT categories considering the reduced infrastructure expenditure and
reduced losses for power supply at EHT voltage than when compared to HT level.
2.1.282 Excess MD surcharge should be levied only when recorded maximum demand exceeds
120% of the contract maximum demand and the excess MD surcharge may be reduced
from 200% to 100%.
2.1.283 Excess MD surcharge should not be levied for feed extensions necessitated due to
reasons attributable to TANGEDCO, TANTRANSCO and reasons beyond the control of
Railways.
2.1.284 Railway Traction tariff may be separate from general industrial tariff.
2.1.285 HT supply points at Erode (HTSC No. 19) and Tiruchirappally (HTSC No. 129) availed
for water pumping may be classified under HT-IIA, and LT supply points exclusively for
water pumping should be classified under LT IIA tariff categories. Also, it was submitted
that HT supply point (HTSC No. 1002) at MRS/Villivakkam may be exempted from
availing supply at 110 KV or may be permitted to continue at 33 KV, as a special case,
without any penalty till the 33 KV transformers complete their useful lives.
2.1.286 Railways Tiruchirapalli division submitted that they have 12 numbers of HT supply
points under various categories. The HT supply points availed by Railways mainly caters
to Railway Hospital, Railway stations and pumping installations. Introducing TOD tariff
on the said HT II A and HT III tariff will be an extraordinary additional burden on the
Railways. The operation in Tamil Nadu is predominantly passenger oriented without
much scope for more financially viable freight movements.
2.1.287 Classify HT supply points with respect to major pumping loads and major colony under
HT IIA category.
2.1.288 Railways may be exempted from TOD tariff under HT II A and HT III tariff supply
points.


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2.1.289 Electricity tariff for Government of India undertaking and public utilities should be lower
than the tariffs charged to other bulk consumers in HT category.
2.1.290 Suitable rebate on the demand and energy charges may be granted for a period of at least
5 years from the date of commissioning for the new Railways Traction substations.
Madhya Pradesh Electricity Regulatory Commission (MPERC) and Rajasthan Electricity
Regulatory Commission (RERC) are providing concessional tariffs to new electrification
projects by Railways.
2.1.291 HT supply points availed by Railway for hospitals, Railways stations and residential
quarters may be exempted from TOD metering.
2.1.292 Leading power factor should be ignored for power factor metering for Railway Traction
load. Alternatively, approve voltage linked VAR charges as given below at the rates
prescribed by CERC for Reactive power exchange:
a. Railways get paid for VAR return when voltage is below 97%
b. Railways pays for VAR return when voltage is above 103%
2.1.293 Railways stated that reactive power absorption/supply is a service to be rendered by the
utility at a cost as per recommendation of CEA. TANGEDCO in its petition has stated
that for the year 2011-12 and 2012-13, 168 MVAR of HT fixed capacitors are proposed
to be provided in 11 KV and 22 KV but yet to be complied with. Stipulating lag + lead
metering for PF computation for Traction who are availing supply at transmission voltage
of 110 KV and distributing 25 kV up to Loco terminal needs to be changed to Lag only
metering for PF computation as being done in other states connected to the southern grid
for honoring the principle of cost causation in tariff setting.
2.1.294 Railways have sought for introduction of EHT category. Most of the states in the country
have differentiation between EHT and HT consumers. In the southern grid also all the
three States except Tamil Nadu have separate EHT category. Tamil Nadu Electricity
Supply Code and Distribution Code also distinguish EHT consumers from HT consumers
and therefore merits separate EHT and HT category for tariff consideration.
2.1.295 Separate EHT tariff may be introduced with demand and Energy Charges lower than the
HT tariff. Railway traction may be subcategorized under EHT category considering the
special nature of moving Railway traction load and the purpose of public carriage without
profit motive.


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Issue-43: Objections/Suggestions by Airport Authority of India
2.1.296 Airport Authority of India (AAI) submitted that TANGEDCO should provide a sub meter
to capture the consumption of operational offices of AAI administrative offices and
charge their electricity consumption under HT II A category.
2.1.297 AAI has requested that its offices be included in HT II A and LT IC.
2.1.298 AAI has submitted that 97% of electricity is used only for Aviation activities while only
3% is used for commercial activities like shops, restaurants which are actually an integral
and small part of the airport operations as an Industry. The services of Aerodromes come
under ESMA 1968 cannot be charged under Commercial tariff. As per Tariff Order dated
31-07-2010, energy charges for Railway Traction is same as that of Industrial
establishment which means that transport sector is considered under Industrial category.
Hence, Airports should also to be charged under Industrial category. The Industrial
Disputes Act 1947 has also considered AAI as Industry.
2.1.299 AAI has further submitted that as per Section 62(3) of the Electricity Act 2003, the
Commission may differentiate the tariff for Airport and allied services. The Appellate
Tribunal of Electricity (ATE) in its judgment dated 26-02-2009 in the Appeal No 106 of
2008 had observed that Mumbai International Airport Pvt. Ltd. would not be treated on
par with consumers of HT II commercial category and directed MERC to re-determine
tariff by way of special category as the services was a public utility.
2.1.300 AAI requested for the permission to extend the power supplies to all user agencies
working at airport for facilitation of passengers at same rate of TANGEDCO tariff.
2.1.301 AAI have requested for change of tariff for CISF Barracks HT SC 727 to HT II A and
inclusion of the term CISF Barracks in Tariff Schedule HT II A and LT I C. AAI
Residential complexes have also requested to be included in HT II A and LT I C instead
of Commercial category.


TANGEDCOs Response to Railways
2.1.302 Considering wind energy injection, as already prayed by the Commission in Appeal No.
75 of 2010 by Indian Railways at APTEL, any EHT and HT consumers has to pay the

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entire distribution cost. Hence, the existing method of adoption of single tariff for the
both demand and energy charges for EHT and HT may continue.
2.1.303 The demand and energy charges for Railways may be kept on for HT industries.
2.1.304 The prayer regarding power factor by the Railways is not related to tariff petition filed,
but it is related to Regulation on Supply Code. The prayer made in respect of excess MD
surcharge to be levied only for RMD above 120% is not feasible of compliance. In
respect of request of ignoring leading power factor, the average power factor is arrived
considering both the leading and lagging VAR and hence the request may not be
accepted.
2.1.305 TOD metering is proposed to be based on the additional expenditure incurred by
TANGEDCO based on UI mechanism. TANGEDCO is also serving the public without
profit motive and without receiving any concession from Railways. Therefore, the
exemption of TOD metering may not be considered.
2.1.306 With respect to connections of water pumps, since the water pumped are not exclusively
for public and it has been used for railways purpose also, the existing tariff may continue.
2.1.307 The Railway substation at Villivakkam has served more than 15 years (more than 100%
depreciation and served life time). The HT supply point (HTSC No. 1002) at
MRS/Villivakkam need not be exempted from availing supply at 110KV and penalty may
be levied. If penalty is levied, only then will Railways take necessary action for
conversion from 33 KV to 110KV.
2.1.308 Due to non availability of voltage wise assets, as directed by Honble APTEL in appeal
no. 192 & 206 and appeal no. 102, 113, 112, preliminary working with apportioning the
total cost at different voltage, taking into account loss at relevant voltage level has been
submitted in the tariff petition. Further, the Honble Commission in the counter affidavit
of Appeal No 75 filed by the Indian Railways in APTEL has stated the technical loss up
to 110 KV systems alone cannot be added to the Railway Tariff because during the wind
season, around 25% of the energy comes from the wind energy generators and these wind
generators are connected to 33/22/11 KV lines of Distribution System. Hence, the
Railways have to bear all the expenditure incurred by the licensee in the transmission as
well as distribution system and tariff may be fixed at +/- 20% of average cost of supply.


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TANGEDCOs Response to Airport Authority of India
2.1.309 APTEL in the Appeal No 195 of 2009 (Mumbai International Airport Private Limited Vs
MERC & RInfra-D) dated 31-05-2011 has directed that the State Commission to have
differential tariff for the aviation as well as the purely commercial activities, such as
shops, restaurants, etc. at the airport. However, if the aviation services could not be
metered separately and purely commercial activities separately, then the State
Commission could re-categorize the Appellant in a separate category other than HT
Commercial II and determine the composite tariff for aviation and the commercial
activities of the Appellant. Accordingly, Airport (HTSC No. 15 and 232 /Chennai
South) may be categorized under High Tension tariff IIB (ii) with lesser tariff than HT
Commercial.
2.1.310 Extension of power supply to all user agencies working at Airport for facilitation of
passengers does not come under purview of TANGEDCO. The extension of power
supply for construction activities within the premises of Airport for the development of
Airport is to be charged HT Tariff III, since the construction could not be considered as
aviation activity.
2.1.311 Since AAIs operational offices (comprising only AAI Administrative offices) are
getting power supply from Airport power supply, therefore, it may be separately metered
in High Tension tariff IIB (ii) and charged under LT tariff V.
2.1.312 CISF Barracks (HT SC No 727/Chennai South) power supply tariff may be changed to
HT Tariff IIA. The term CISF Barracks need not be included in Tariff schedule HT IIA
(under HT category) since this comes under the term Housing Complexes. CISF
Barracks is also not included under LT Tariff IC since no LT service connection for the
same is available at present.
2.1.313 AAI Residential Complexes may be included in HT Tariff IIA. Tariff for HTSC No
208/Chennai South may be changed to HT Tariff IIA.
2.1.314 The term AAI Residential Complexes may not be included in Tariff schedule HT IIA
(under HT category) since this comes under the term Housing Complexes and AAI
Residential Complexes is also not to be included under LT Tariff IC since there is no LT
service connection for the same available at present.


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TANGEDCOs Response to General Issues
2.1.315 TANGEDCO will try to file tariff petition every year in future.
2.1.316 Since the last partial revision in tariff from 01-08-2010, there has been substantial
increase in operational costs of TANGEDCO on account of increase in its cost of inputs,
production cost, wages-salaries of employees as well as the inflationary conditions.
2.1.317 Honble APTEL has directed to amortize along with the interest charges as per the
provision of the Act, Policy and the Regulations and true up for ARR for the year 2010-
11 and gave consequential directions for recovery of the revenue gap derived after true up
along with the carrying cost within a period of three years. The un-recovered gap for the
year 2010-11 to 2012-13 may be treated as regulatory asset and carried over to be
recovered through future tariffs with necessary allowance on regulatory asset in five
financial years with necessary amendments in the Tariff Regulation.
2.1.318 TANGEDCO submitted that it has not claimed for the losses from 2003-04 to 2009-10
for Regulatory asset and have only proposed for losses for control period years of 2010-
11 and 2012-13.
2.1.319 The control period could not be one year as per Multi Year tariff process.
2.1.320 TANGEDCO has drawn up a detailed investment and capital expenditure program to
augment the generation capacities and also to strengthen the Transmission & Distribution
systems with the aim to provide efficient service to the consumers. Any project expansion
and improvement of Transmission & Distribution (T&D) Network has to be borne out of
internal generation of resources. However, in the absence of revenue surplus, this amount
can be raised only from the debt market. This has resulted in increase in the interest and
finance charges on the borrowings to fund these expenditures.
2.1.321 TANGEDCO is also undertaking R&M of its old generating stations, which would lead
to extension of life and improvement of the Plant Load Factor (PLF) .All these efforts,
would ultimately result in enhanced availability of power at lower cost to the consumer.
2.1.322 The Transfer Scheme transferring the properties and personnel of the erstwhile TNEB
was notified by the Government of Tamil Nadu vide G.O. (Ms.) No. 100 dated 19-10-
2010.


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2.1.323 As per Clause 6(2) of the Government Order, all personnel of the Board (excluding
Chairman and Director of the Board) shall stand transferred to and absorbed in
TANGEDCO on a provision basis, subject to finalization of Employee Transfer Scheme
by the State Government in consultation with the Chairman of TNEB Limited.
2.1.324 Clause 6(5) of the Transfer Scheme states that the personnel of the Board shall stand
assigned to the services of the relevant Transferee, on deputation basis, on as-is-where-
is basis, namely that they will continue to serve in the place where they are posted on the
date of transfer.
2.1.325 As per clause 6(17) of the Government Order, till finalization of transfer of personnel to
TANTRANSCO, the payment of terminal benefits to existing pensioners will be
continued to be met from the cash flow of the operations of the TANGEDCO and
TANTRANSCO would reimburse its proportionate share. The more accurate and realistic
assessment of the probable amount of pension liability could be made, only when
employee transfer is finalized. Hence the process of assessment of liability and creation
of corpus fund could be started by the successor entities once the employee transfer is
finalized.
2.1.326 The limitation of power purchase could not be done, since the same is based on demand.
If the same will be limited and fixed, for the month/day/month/year there will be no
power during fag end of that period (i.e. Quota will be finished before the expiry of that
period).
2.1.327 The procurement of fuel inside India is based on the allocation and TANGEDCO could
not change the grade of coal at the allocated site. However, all efforts are being taken to
maximize efficiency.
2.1.328 The fuel price adjustment charges have been proposed for all the consumers. With respect
to unmetered service, the sampling data of agriculture consumption and computed
consumption of Hut service may be considered.
2.1.329 As per Tariff Policy, Tariff is to be fixed at +/- 20% of the average cost of supply. It has
proposed tariff for HT industries (Textile Industries) as +6.69% of average cost of
supply and since the tariff for HT industries has not been revised from 2003 and
marginally increased by Tariff Order dated 31-07-2010, the reduction of cross subsidy
could not de done. Further, if the tariff has not been revised for HT industries, the same

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will be -10.3% of the average cost of supply and reduction of cross subsidy cannot be
considered at this juncture for HT industries.
2.1.330 The HT industries have not been overloaded by means of cross subsidy. There has been
no direction to propose tariff below Average Cost of Supply for the consumers with
lesser cost to serve and the tariff has been proposed above the average cost of supply
considering affordability.
2.1.331 The demand charges have been proposed based on the expenditure to be incurred for
fixed cost and variable cost (available power). Hence the proportionate reduction of
demand charges does not arise for R&C period. Considering the expenditure to be
incurred, more demand charges has to be proposed in the tariff petition but it has not been
proposed due to further increase of cross subsidy.
2.1.332 The preparation of actual cost to serve model will be complex due to wind energy. Since
cost to serve model is to be used for deriving cross subsidy and the same need to be
arrived based on the cost coverage cross subsidy analysis submitted in the ARR. Hence
the tariff may be fixed at +/- 20% of average cost of supply.
2.1.333 On the query raised regarding the fixation of tariff subsidy, TANGEDCO clarified that
any decision related to tariff subsidies is under purview of Government of Tamil Nadu
for all the consumers.
2.1.334 The tariff subsidy is being paid by the Government of Tamil Nadu in advance. This is
vide GO Letter (Ms) No 8 dated 04-02-2012 wherein the Government has given
concurrence for payment of subsidy for various categories of consumers and issued the
commitment letter.
2.1.335 As per Tariff Policy, tariff is to be fixed at +/- 20% of the average cost of supply. The
proposed tariff for HT industries (Textile Industries) is within +6.69% of average cost of
supply and since the tariff for HT industries has not been revised from 2003 and
marginally increased in the Tariff Order dated 31-07-2010, the deduction of cost subsidy
could not de done.
2.1.336 The tariff for HT industries has been increased to 18.59% with minimum cross subsidy
burden of 6.69%.
2.1.337 Separate metering for other purposes for constructions in the HT industries premises may
not be considered as industrial activity and has to be treated as Temporary supply.

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Similarly, the employee dormitory system cannot be considered as residential activity
since they are similar to Hotels without charges.
2.1.338 The tariff petition was filed before the issue of the Draft Notification dated 01-12-2011
with regard to Tamil Nadu Electricity Supply (6th Amendment) Code, 2011 by the
Commission. TANGEDCO has already submitted the recommendation for exemption of
existing 33 KV HT consumers who availed supply at 110KV supply to the Commission.
For the surcharge of 10 paisa per unit, it submitted that the consumer has to pay it until
the conversion to respective voltage wise supply by the existing consumer.
2.1.339 The Multi National Companies (MNCs) and Information Technology (IT) companies are
providing employment and foreign exchange to the State. Considering the long term
development of the state, continuous supply has been given to the MNCs. Such
concessions and levy of industrial tariff for IT services is based on the Policy of
Government of Tamil Nadu.
2.1.340 As per National Tariff Policy, tariff for any category of consumer has to be fixed at +/-
20% of average cost of supply. Accordingly, the tariff for HT private recognized
education institutions has been proposed more than average cost of supply but within the
range of +/- 20% of cost of supply.
2.1.341 The tariff for HT industries has to be more than LT industries since the cross subsidy by
LT industries is less than HT industries. Hence, the tariff hike for HT and LT industries
may not be the same.
2.1.342 The basis of adoption of Rs. 300/KVA for demand charge have already been submitted to
Honble TNERC. Energy charge (Rs. 500/unit) has been proposed in order to have
minimum cross subsidy for HT industries.
2.1.343 The demand charges for educational institutions have been proposed based on the fixed
cost. Since the demand charges is not related to variable cost, reduction of demand for
minimum consumption need not be considered.
2.1.344 As per section 62(3) of Electricity Act 2003, tariff may be fixed based on the load factor
and nature of supply. With respect of private educational institutions, load factor will be
high and is commercial in nature. Hence, private educational institutions should be
charged a higher tariff. In other states, the fixed charges have been collected on KW
basis. The estimated expenditure towards fixed cost for the year 2012-13 work out to be

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Rs. 158/KW/month. However, Rs. 120/KW/month has been proposed in the tariff
petition.
2.1.345 TANGEDCO submitted that considering the nature and usage of supply, tariff hike has
been proposed from HT Tariff III.
2.1.346 Higher tariff for domestic consumption above 500 units has been proposed for both urban
and rural consumers which cover the A/C units for villages.
2.1.347 After a gap of seven years, tariff has been proposed to increase marginally during the
year 2010-11 for certain category of consumers. The domestic consumers have been
given tariff hike of only Rs. 1.00 per unit for their bi-monthly consumption of above 600
units. For the consumption up to 600 units, the tariff has been kept the same from the
year 2003 itself. The operational cost (68%), the coal and oil cost (229%) and power
purchase cost (235%) have increased drastically whereas the tariff for the industrial
consumers remained the same as that of 2003.The loss per unit has increased vis--vis the
average cost of supply (CoS) and the average rate of realization (RoR) from the year
2005-06 onwards to 2012-13.
2.1.348 In order to complete the on-going power projects and subsequent reduction in power cuts
and for day to day operation, the tariff hike is essential.
2.1.349 The tariff for commercial category has been reduced. Tariff for 0-100 units is proposed
from Rs. 5.30 per unit to Rs. 4.30 per unit and tariff for 0-200 units is retained at Rs. 5.30
per unit. Tariff for above 200 units has been raised marginally from Rs. 5.80 per unit to
Rs. 6.50 per unit.
2.1.350 The tariff for domestic category is -56.99% which has been proposed to increase up to
42% and the cross subsidy has been increased to (-38.46%).
2.1.351 Since the cross subsidy by the LT industries is less than HT industries, the proposed tariff
is more for LT industries than HT industries. The tariff for the affluent consumers such as
cinema theatres, commercial complexes, health clubs are proposed at a higher tariff.
2.1.352 The detailed representation for a separate dedicated power station for knitwear sector
and total no. of services etc. and availability of land in Tirupur area may be forwarded to
Director (Distribution)/TANGEDCO for further analysis.

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2.1.353 The proposed tariff for domestic and local bodies is still below average cost of supply
and the existing tariff of industries itself is above the average cost of supply. In order to
reduce the cross subsidy, lesser tariff increase has been proposed for HT industries.
2.1.354 The tariff for LT Industries has been proposed based on HT and LT slabs system
provided for consumption of domestic, cottage and power loom industries. Since the
cross subsidy by the LT industries are less than HT industries, the proposed tariff is more
for LT industries than HT industries.
2.1.355 The tariff for agriculture has been increased by 600% and directions for road map have
been requested in the tariff petition for proposing future tariff for all categories.
2.1.356 Due to less hours of supply to the Agriculture sector, agriculture consumption is
reducing.
2.1.357 TANGEDCO submitted that considering the nature and usage of supply, tariff hike has
been proposed for LT Commercial category.
2.1.358 Maximum tariff for lavish illumination has been proposed in the tariff petition.
2.1.359 The construction of college building may not be considered as educational activity and
may be charged under LT Tariff IV.
2.1.360 Section 46 of Electricity Act 2003 is related to the extension of new line and not related
to fixing tariff for consumers. As per the Section 62(3), electricity charges may be fixed
for the purpose for which the supply is required. Therefore, temporary supply for
construction purpose of building has to be charged higher than normal supply services.
2.1.361 The power purchase from the private generators is based on the power purchase
agreements and disputes in this regard are under legal jurisdiction.
2.1.362 TANGEDCO is taking all efforts to commission the new generating plants.
2.1.363 Since there is no sufficient own generation and increasing demand, power has been
purchased based on the agreements and from traders for the benefit of consumers, which
if not done, will lead to reduction in existing power supply and increase in power cut.
2.1.364 Considering the demand, TANGEDCO will adhere to the merit order dispatch to be
issued by the Commission to the extent possible.

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2.1.365 If the power purchase cost is limited to Rs. 3/unit, then there will be more power cuts
which may not be endured by the people of Tamil Nadu.
2.1.366 If cheaper hydro power is marked for the Agriculture category, then tariff for other
consumers will increase.
2.1.367 As regards the requests of the horticulture growers to be treated under agriculture, it is
submitted that the classification has to be decided by the GoTN. For orchards, there can
be no free power as stated by the GoTN assembly. TANGEDCO requested the
Commission to take steps as per rules.
2.1.368 All suggestion for promoting renewable energy shall be considered.
2.1.369 The suggestion of promoting CFL and energy saving measures will be considered.
2.1.370 Quality management, preventive maintenance, Demand side management and
improvement works are being undertaken under various schemes with available financial
and human resources.
2.1.371 TANGEDCO will make necessary efforts for Demand Side Management (DSM) and
Energy Efficiency (EE) as per direction of the Commission, after perusal of blue print for
DSM and Energy Efficiency.
2.1.372 As per the Tariff Policy, the tariff for hut services will be atleast 50% of cost of supply.
The proposed tariff is -53% of average cost of supply and in order to submit the future
proposal, road map for reduction of cross subsidy is being prayed from the Commission.
2.1.373 The revised peak hour timing proposal is based on the load condition and extra
expenditure to be incurred for that timing. The consumer has to pay for the energy
consumed during peak hours with surcharge.
2.1.374 The night hour incentive has been included to motivate the consumers to use the excess
energy available during night hours. There is no excess energy available during the night
hours at present. The night hour incentive may be withdrawn, but the same is not
proposed due to less capacity addition. The peak timing does not depend on peak. Instead
it depends on sustained peak hours.
2.1.375 TANGEDCO has submitted the appeal for power factor incentive before the Supreme
Court of India and the same is pending for jurisdiction.

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2.1.376 Action is being taken by TANGEDCO to reduce the line loss. Further, the enforcement
wing has been effectively undertaking remedial measures for reduction of commercial
losses.
2.1.377 The petition filed is not a final true up petition. The petition is based on the preliminary
Balance sheets and final true up petition will be filed in the later years as being done in
other States.
2.1.378 The income from Trading has been furnished as zero based on assumption. In case of any
variation, the actual figures will be submitted at the time of true up petition.
2.1.379 The detailed Capex schemes will be submitted as per direction of the Commission.
2.1.380 The limitations of interest on loan can be detrimental. Any clarification sought in regard
to the equity by the Commission will be submitted.
2.1.381 Fresh capital for on-going works is being raised.
2.1.382 The net annual transmission capacity has been adopted in the petition based on the
Commissions Order No. 2 dated 15-05-2006.
2.1.383 The Government of Tamil Nadu has been addressed for provision of meters for 100%
metering at agriculture service, considering social conditions of Tamil Nadu.
2.1.384 The consumption of unmetered Agriculture services is based on scientific sampling and
connected HT consumption has been submitted for measurement of T&D loss. In
addition, Anna University has also been appointed for evolution of metering at
agriculture services.
2.1.385 Necessary steps will be taken to adhere to the specific directions of the Commission
regarding improving operational efficiency.
2.1.386 Drug and rehabilitation centers may not be treated on par with physically handicapped.
Mentally retarded and rehabilitation centers may not be given any concessional tariff.
However, Private educational institutions which run for free of cost for special purpose
(mentally retarded and physically handicapped) alone deserve concessional and separate
tariff. LT Tariff IIB (1) may be adopted for rehabilitation center for mentally ill which
offers totally free treatment.

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2.1.387 If the request of separate tariff category for textile industry is considered, then other
consumers of industrial category will also request for the same and thus, there would be
no tariff rationalization.
2.1.388 The industrial tariff for Information Technology (IT) industries has been recommended
based on Government of Tamil Nadu clarification.
2.1.389 Housing complexes may be included under HT Tariff IIA.

Commissions Views on the Objections / Comments / Suggestions

Southern Railways
2.1.390 Calculation of cross subsidy is based on cost to serve. The Tariff Policy states that for
achieving the objective that the tariff progressively reflects the cost of supply of
electricity, the SERC would notify roadmap within six months with a target that latest by
the end of year 2010-2011 tariffs are within 20 % of the average cost of supply. Thus,
average cost of supply is to be reckoned for determination of tariff for various categories
of consumers.
2.1.391 Nothing in the Tariff Policy states the tariff should be determined on the basis of paying
capacity of a consumer. Therefore, the contention of the Railways in this regard is a
misplaced one. It is submitted that this Commission has to strictly adhere to section
62(3) of the Electricity Act in the matter of determination of tariff. The said section
prescribes the circumstances under which differentiation can be made between various
categories of consumers in the matter of determination of tariff as reproduced below:
(3) The Appropriate Commission shall not, while determining the tariff under
this Act, show undue preference to any consumer of electricity but may
differentiate according to the consumer's load factor, power factor, voltage, total
consumption of electricity during any specified period or the time at which the
supply is required or the geographical position of any area, the nature of supply
and the purpose for which the supply is required.

2.1.392 The Commission also noted that the Railways require uninterrupted power supply and
such uninterrupted power supply reduces the available quantity of energy to various other
categories of consumers. Ensuring uninterrupted power supply is a factor which places

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the Railways in a different category than other consumers. All HT consumers in the State
are subject to R & C measures wherein upto 90% power cut is imposed upon them on
peak hour consumption. They also need to pay extra charges for consumption in peak
hours due to TOD tariff. Railways, however is not subject to R & C measures and TOD
tariff.
2.1.393 High power factor incentive was withdrawn by the Commission for different reasons.
The important reason is that maintaining high power factor itself is an incentive to the
consumer as it leads to stable voltage, reduction of strain to consumer equipments and
reduction of current consumption charges to the consumer.
2.1.394 Tamil Nadu Electricity Supply Code has adopted Lag + Lead logic for imposing penalty
for low power factor. High reactive power, both due to leading and lagging power factor
is injurious to the grid system. It affects the system voltage, capacity and stability. Only
for this reason, the Commission introduced the Lag + Lead logic for power factor
measurement by appropriately amending the Supply Code. Lag + Lead logic for power
factor measurement is followed in many States.
2.1.395 System loss is minimum only at unity power factor. It means, the losses will increase
both at lagging and leading power factors and hence not desirable. Both leading and
lagging power factors have to be controlled. Both capacitive VAR and inductive VAR
pumped into the system are detrimental to the grid and therefore, the consumer has to
improve the power factor as specified in the Commissions Regulations / Codes. Even
though, the 110 KV lines are dedicated for the Railways, the drawal/injection of leading
reactive power will reflect on the State grid causing voltage fluctuation, increased line
losses, etc.
2.1.396 The request of Railways for considering its water pumping load under HT IIA and LT
IIA categories depending on the type of connection and the request for exemption from
TOD tariff cannot be considered because it is a mixed load as water is used for all
purposes like residential quarters, stations, trains etc.
2.1.397 As regard to the request for allowing MRS/Villivakkam to avail supply at 110 KV, the
Commission is of the view that this issue is a local issue and related to the Supply Code
and cannot be included in the tariff determination exercise.




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Airport Authority of India:
2.1.398 The Commission is of the opinion that the two services i.e. AAI Residential Complex and
CISF Barracks used for residential purpose of the staff and the security personnel may be
given under HT Tariff 2A meant for Housing Complexes.
2.1.399 The power used for other activities like shops, banks, restaurants, temples, etc. in the
residential area shall be metered and billed accordingly by TANGEDCO under the
respective LT categories.
2.1.400 As regards the request of AAI relating to consider its offices under HT IIA and LT IC,
the Commission states that all the Government of Tamil Nadu offices are classified under
Commercial category and therefore this request cannot be accepted.
2.1.401 The supply of power to aerodomes and commercial activities likes shops, restaurants
services which are used for airports are composite in nature involving both aviation and
non-aviation activities. The main issue involved is on the determination of the quantum
of power used for aeronautical and non-aeronautical activities. Therefore, a decision on
this can be taken after detailed study by the Commission. Till such time the status quo
may continue

General Issues
2.1.402 The Commission examined various issues raised by different stakeholders and the
response of the TANGEDCO. These issues were raised in the written comments received
by the Commission as well as highlighted during the hearings held at different locations.
The views expressed by the TANGEDCO are in the form of response to the comments of
individual stakeholders and the response of TANGEDCO at the conclusion of hearings in
each location. The Commission would like to make a summary comment on these issues.

2.1.403 As regards to the functioning of the Commission and processing the Tariff petition in the
absence of Chairman of the Commission, the Commission would like to follow the
provision of the Electricity Act 2003:
Section 93. (Vacancies, etc. not to invalidate proceedings):
No act or proceedings of the Appropriate Commission shall be questioned or
shall be invalidated merely on the ground of existence of any vacancy or defect in
the constitution of the Appropriate Commission.


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Section 92. (Proceedings of Appropriate Commission):

(2) The Chairperson, or if he is unable to attend a meeting of the Appropriate
Commission, any other Member nominated by the Chairperson in this behalf and,
in the absence of such nomination or where there is no Chairperson, any Member
chosen by the Members present from amongst themselves, shall preside at the
meeting.
(3) All questions which come up before any meeting of the Appropriate
Commission shall be decided by a majority of votes of the Members present and
voting, and in the event of an equality of votes, the Chairperson or in his absence,
the person presiding shall have a second or casting vote.

Regulation 12 of Tamil Nadu Electricity Regulatory Commission Conduct of Business
Regulations dated 08-01-2004, reads as follows
12. Except for initial procedural issues like notices, filing of copies and
documents, the quorum of the Commission shall be two among the three members.
For all initial procedural issues, the quorum may be one member.

From the above provisions, it could be seen that the Electricity Act 2003 and TNERC
Conduct of Business Regulations enables the two Members to function in the absence of
Chairperson.
2.1.404 On the contentions of consumers that the tariff hike is nearly 100% for domestic
cateogry, the Commission would like to clarify that this increase in tariff has been
proposed after the year 2002-03 for most categories of domestic consumers and after
introduction of subsidy in 2004.
2.1.405 The issue of Transmission and Distribution losses is discussed separately in this Order.
2.1.406 The Commission advises TANGEDCO to streamline the procedure for temporary power
supply requirement for construction activities.
2.1.407 The accumulated losses submitted by TANGEDCO up to 31-10-2010 is Rs. 17207.30
Crore, which needs to be addressed in final transfer scheme through financial
restructuring. Statutory advice of the Commission to GoTN in this regard vide TNERC
letter dated 09-12-2010 (Annexure VI) may also be referred.


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2.1.408 Even in the subsequent years FY 2011-12 and FY 2012-13, the TANGEDCO has
indicated losses in each of the years. The analysis on expenditure on individual item is
discussed under respective heading separately in this Order.
2.1.409 For Tariff design of FY 2012-13, the Commission has carried out prudence check of each
of the cost elements submitted by TANGEDCO in its petition. Based on this prudence
check, the Commission has determined Net Revenue Requirement recoverable from
tariff. The Commission in this Order has adopted a Tariff Philosphy to allow incremental
revenue from approved tariff matching with the net additional revenue requirement,
thereby designing the tariff for FY 2012-13 on revenue neutral basis.
2.1.410 The Commission directs TANGEDCO to submit the detailed CAPEX schemes with in 3
months of the date of issue of this Order.
2.1.411 As regards to levying of estimate extension cost, the Commission clarifies that it has
already been directed to TANGEDCO for not collecting the estimated cost from the
intending consumers and also to reimburse the amount collected earlier against the
provision of TNERC Distribution Code.
2.1.412 As regards tenants being overcharged by the house owners, the Commission in this
regard had issued a press note on 04-08-2010 in which TANGEDCO had been advised to
file such complaints under Section 142 of Electricity Act 2003 or before the appropriate
judicial magistrate under Section 146 of Electricity Act 2003.
2.1.413 The Commission directs TANGEDCO to comply with various provision of Energy
Conservation Act 2001 pertaining to energy audit.
2.1.414 The major reasons for the losses are shortage of power, exponential growth of demand
and the need for power purchase from the market at high price coupled with lower
average billing rate as compared to average cost of supply, notwithstanding the increase
in various input costs.
2.1.415 The proposal of TANGEDCO in its petition involves creation of Regulatory Asset to the
tune of Rs. 24762.31 Crores. Generally creation of Regulatory Asset is not encouraged.
In this particular case, the tariff hike sought for by the TANGEDCO for the year 2012-13
is Rs. 9741 Crore which amounts to 37% of increase over the existing tariff. Even after
this proposal, the Petition envisages creation of Regulatory Assets of Rs. 4806 Crore for
2012-13 alone. Proposed tariff hike to yield revenue of Rs. 24762 crore, which is the

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revenue gap upto FY 2012-13 on standalone basis, would be around 93%, further. Such
an increase may not also be justified as the same tariff may not be required to be
maintained in future. While the accumulated losses before unbundling has been proposed
to be addressed through financial restructuring, losses to the magnitude of Rs. 24762.31
Crore may be dealt with by combination of Tariff hike and Regulatory Asset. The
Commission, therefore, would like to get the reaction of the Government of Tamil Nadu
in this regard and accordingly a reference is made to the Government of Tamil Nadu on
16-03-2012 which is enclosed as Annexure VIII.
2.1.416 The Commission appreciates the concerns expressed by various stake holders both in the
written comments submitted by them to the Commission as well as the concerns
expressed during the Public Hearings held at Chennai at 30th January 2012, Coimbatore
on 2nd February 2012, Tiruchirapalli on 6th February 2012 and at Madurai on 10th
February 2012. The Commission directs the TANGEDCO to properly monitor the on-
going projects so that they are commissioned without further delay. The TANGEDCO
should also ensure that the TANTRANSCO completes all the associated transmission
system for evacuation of power from the generating stations which are getting
commissioned during the year 2012-13 so that power generated from the generating
stations are transmitted up to the Load Centers without any bottle necks.
2.1.417 As regards the generation cost of new capacity addition, the Commission has directed
TANGEDCO to file separate petition for the approval of capital cost and tariff
determination of new power plants. However, the Commission in this Tariff Order has
provisionally considered the variable charges for new power plants.
2.1.418 The Commission clarifies that Ennore TPS has been proposed to be decommissioned by
2016-17.
2.1.419 The Commission has received the comments from the industrial consumers supporting
for restarting the incentive for maintaining near about unity power factor. A view was
also expressed that most of the consumers would maintain the power factor at around 0.9
lag and therefore TANGEDCO will be the most affected party in the discontinuance of
the incentive.
The provisions relating to power factor are reproduced below:
Regulation 13(3) of Tamil Nadu Electricity Distribution Code dated 21-07-2004

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It shall be obligatory on the part of the consumers to improve the power factor of
their connected loads to the required level in accordance with provisions made in this
code. Every consumer with a power factor less than the stipulated level may be
suitably advised to rectify the situation by installing appropriate power factor
correction equipment, without prejudice to the levy of compensation charges as per
the orders of the Commission from time to time.

Regulation 8(6)(ii) of Tamil Nadu Grid Code dated 19-10-2005
ii) All the end users, distribution licensees, transmission licensees and STU are
expected to provide local VAR compensation such that they do not draw VARs from
the HV Grid. VAR compensation has to commence in the following order.
Consumer end
Distribution transformer end
At the substations end of 11 / 22 KV distribution feeders
Substations
Generating stations

Regulation 4.6.1(a) of Indian Electricity Grid Code (IEGC)
Reactive Power compensation and/or other facilities, shall be provided by STUs, and
Users connected to ISTS as far as possible in the low voltage systems close to the
load points thereby avoiding the need for exchange of Reactive Power to/from ISTS
and to maintain ISTS voltage within the specified range.
As per the above stipulations, the Commission is of the view that it shall be obligatory on
the part of the consumer to generate adequate reactive power at his load end so as to
maintain stipulated power factor in the network. The role of the consumer is most
important because only if the consumer maintains a power factor of near unity in his load
end, the entire network (from generator to the load) is relieved of carrying the reactive
power.


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2.1.420 In the Explanatory Memorandum to the Tamil Nadu Electricity Supply (Amendment)
Code, 2010 notified vide Notification No. TNERC/SC/7-21 dated 25-10-2010, it was
stated that
7. Maintaining high power factor at load end (consumer end) helps to maintain the
stability of the grid and good voltage profile in the electrical network. This ultimately
helps the consumer to avail quality power.
8. The important factor to be considered is that by maintaining a high power factor, a
consumer could save his electricity charges considerably by way of reduced demand
charges. By way of lower demand charges, a consumer can recover his capacitor
installation cost within a few months. After this short pay back period, the consumer
is continuously benefited by the lower demand charges.
9. In the above circumstances, the Commission considers that any further incentive
provided to the consumer by the TNEB would be a bonus for the consumer. The
incentive being paid as power factor incentive, if used directly by TNEB for installing
additional capacitors, it will benefit all the consumers. Therefore, the Commission
finds no reason to extend the benefit of high power factor incentive to limited
consumers and therefore the Commission decides to withdraw the incentive
component for power factor improvement with effect from 01-08-2010 as stipulated in
the tariff order No. 3 of 2010 dated 31-07-2010.
PF disincentive and incentive should not be equated with each other. The Commission
notes that PF disincentive mainly caters to passing the additional cost of the grid
imbalance settlement to the consumer. Whereas, maintaining high power factor itself is
an incentive to the consumer as it leads to stable voltage, reduction of strain to consumer
equipments and reduction of current consumption charges to the consumer. The
Commission in TNERC (Terms and Conditions for Determination of Tariff) Regulations,
2005 dated 18.03.2011 has stated that
12. Power Factor
The Commission may direct certain categories of consumers to maintain power
factor at a prescribed level and allow incentive / disincentive for maintaining
above / below the prescribed level.

The Commission has only specified the minimum power factor to be maintained by the
consumers as 0.9 for levying penalty and has not specified any benchmark power factor
for the purpose of incentive.

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2.1.421 The Commission would like to state that it is understood that the matter regarding power
factor incentive is yet to be taken up for hearing by the Supreme Court.
2.1.422 The TANGEDCO should also ensure that the power which is available at the sub-stations
are taken up to the consumption points by way of appropriate distribution systems. All
these arrangements will have to be carried out through a well structured business plan and
individual schemes matching with the business plan. All such plans and schemes shall be
submitted in accordance with the Terms and Conditions of Tariff Regulations 2005,
MYT Tariff Regulations as well as Licensing Conditions. The submission in this regard
so far has been very unsatisfactory. The Commission has been addressing the utilities by
way of letters as well as by way of directions. The compliance to such letters and
directions will have to be more serious.
2.1.423 The Commission clarifies that lavish illumination for weddings and other private
functions are charged LT VI i.e. Supply to Temporary Connections.
2.1.424 As regards the request of certain stakeholders seeking TANGEDCO to provide separate
electricity meters for measuring the consumption at labor welfare establishments and not
treating as theft, the Commission states that there are several such cases which have been
stayed by the High Court. Tariff schedule of this Order may also be referred in this
regard.
2.1.425 Various issues raised by stakeholders relating to Supply Code Regulations and R&C
Orders do not fall under the purview of present exercise of Tariff determination.
2.1.426 Objection regarding the waiving off electricity generation tax during the period of R&C
measures, the Commission would like to specify that Electricity Generation Tax is in the
domain of Government of Tamil Nadu.
2.1.427 The drives against theft of electricity are governed by Section 126 (Assessment) and
Section 135 (Theft of Electricity) of Electricity Act 2003. Enforcement Squad has to
work in accordance with such provisions and the Regulation of the Commission.
2.1.428 Sufficient data is not available to assess the impact of the additional hour in Peak hours,
and hence the Commission is continuing with the existing TOD slabs. The TANGEDCO
is directed to submit data on ToD consumption alongwith the next Tariff Application
along with proper justification and consideration by the Commission. Depending on the

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impact and response to the ToD tariffs, the Commission may consider extending the ToD
tariffs depending on data availability and viability.
2.1.429 The Commission disagrees with the suggestion that peak hour tariff and night hour rebate
should be on equal footing. During the Peak hours, marginal cost of power procurement
is very high and being in revenue neutral regulated business, a pass through mechanism
has to be made available to the Utility to recover its cost and also to disincentivise the
avoidable consumption during the peak period. During the night off-peak hours the
Utility would be operating its base load plants to cater to the off peak load, which are
built in to the tariff of the consumer and there is no equitable avoidance of cost for the
Utility vis--vis peak hour consumption.
2.1.430 The tariff for agricultural consumers is not zero. The Commission in its last Tariff Order
dated 31-07-2010 has prescribed Rs. 250 per HP per annum and TANGEDCO has
proposed to increase the same to Rs. 1750 per HP per annum which is borne by the
Government of Tamil Nadu by way of subsidy.
2.1.431 As regards to the determination of tariff on the basis of operating voltage, the
Commission is of the opinion that the voltage wise cost of supply is synonymous with
Cost to Serve method to determine tariff as already discussed by the Commission.
2.1.432 Since audited accounts are not available for the year FY 2011-12, the Commission has
considered two stage of True-up i.e. Provisional True-up and final True-up. Presently, the
Commission is providing Provisional True-up and the final True-up based on the audited
accounts for FY 2011-12 will be done in the next Tariff determination process.
2.1.433 As regards to the objection raised by the objector regarding TANGEDCO not incurring
any cost towards supplying power to the consumer drawing power directly from the grid,
the Commission is of the opinion that as per Section 38 & 39 of the Electricity Act 2003
specifying the functions of Central Transmission Utility (CTU) and State Transmission
Utility (STU), it has been clearly mentioned that CTU and STU cannot engage in the
trading of power and therefore, cost incurred in the supply of power of such consumers
also comes under the purview of Distribution Company. Section 38 & 39 of the
Electricity Act 2003 are as below:
Section 38. (Central Transmission Utility and functions):
(1) The Central Government may notify any Government company as the Central
Transmission Utility:

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Provided that the Central Transmission Utility shall not engage in the business of
generation of electricity or trading in electricity.

Section 39. (State Transmission Utility and functions):
(1) The State Government may notify the Board or a Government company as the
State Transmission Utility:
Provided that the State Transmission Utility shall not engage in the business of
trading in electricity.
In view of this, all consumers, even if served at EHT voltages, are billed by Distribution
licencees only.
2.1.434 The Commission has directed TANGEDCO in its Tariff Order dated 15-03-2003 that
7.13 Surcharge for Arc Furnaces
In the existing tariff schedule, High Tension industries under Tariff I-A having arc
furnaces are being charged 25% extra to the High Tension Tariff I-A for the electricity
consumption. This additional charge is on account of the harmonics created by the
rectifiers used by the arc furnaces. The Commission has modified this clause in the
Tariff Schedule and these arc furnaces will now have to pay additional energy charges
of 15%, on the base HT I-A tariffs. Further, the Commission is of the opinion that
this extra charge should be levied only till such time as the harmonics are created by
such industries. These industries and TNEB would be well advised to study remedial
measures available to rectify the situation. If such remedial measures are adopted by
the industries / TNEB, then this surcharge has to be reviewed.
The clause for review of surcharge if TANGEDCO/Industries adopt remedial measure to
rectify the harmonics in the system does not appear in the Commissions last Tariff Order
dated 31-07-2010. However the Provision in Tariff order No. 3 of 2010 dated 31-07-2010
for similar charges is reproduced below:
9.11.2.4 The consumption of electrical energy by the HT Industrial Consumers under
HT IA having Arc furnaces will be charged an additional energy charge of 15% on the
HT IA tariff.

The Commissions Supply Code has the following provisions for levy of additional
charges for harmonics dumping:
Regulation 4(1)(iv) of Supply Code:

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Additional charges for harmonics dumping
Where any equipment installed by a consumer generates harmonics, the consumer
shall provide adequate harmonic suppression units to avoid dumping of harmonics
into Licensees distribution system and the Licensee is at liberty to provide suitable
metering equipment to measure the harmonic level pursuant to such harmonic. Where
the consumer fails to provide such units, he shall be liable to pay compensation at
such rates as the Commission may declare from time to time.
2.1.435 The Central Electricity Authority in its Technical standards for connectivity to the grid
regulations, 2007 has specified the following limits for harmonic distortions in the
Distribution system and Bulk consumers:

3. Voltage and current Harmonics

(1) The total harmonic distortion for voltage at the connection point shall not exceed
5% with no individual harmonic higher than 3%.
(2) The total harmonic distortion for current drawn from the transmission system at
the connection point shall not exceed 8%.
(3) The limits prescribed in (1) and (2) above shall come into force not later than five
years from the date of publication of these regulations in the official gazette.

2.1.436 The above regulation was notified in the Government Gazette on 21-02-2007. As
specified in the Supply Code, when the consumer fails to provide adequate harmonic
suppression unit to avoid dumping of harmonics into Licensees distribution system he
shall be liable to pay compensation at 15% of the respective tariff. If such remedial
measures are adopted by consumers/TANGEDCO to bring down the harmonics within
the limit as specified by CEA regulations, then this compensation charge shall not be
levied. The measurement of harmonics shall be done by the Distribution Licensee using
standard meters/equipments in the presence of the consumers or their representative.
Accordingly, non-levy of Compensation Charge, if consumer takes corrective action as
per CEA Regulations, is being introduced in this Order.





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Fuel Cost
2.1.437 Adjusting FPAC charges in the mid of the year has been allowed by the Electricity Act
2003 under section 62 sub section 4, which states:
No tariff or part of any tariff may ordinarily be amended, more frequently than
once in any financial year, except in respect of any changes expressly permitted
under the terms of any fuel surcharge formula as may be specified.

Also, the APTEL in its Order O.P. 1 of 2011 dated 11-11-2011 under para 65 (vi) has
stated that
(vi) Fuel and Power Purchase cost is a major expense of the distribution
Company which is uncontrollable. Every State Commission must have in place a
mechanism for Fuel and Power Purchase cost in terms of Section 62 (4) of the
Act. The Fuel and Power Purchase cost adjustment should preferably be on
monthly basis on the lines of the Central Commissions Regulations for the
generating companies but in no case exceeding a quarter. Any State Commission
which does not already have such formula/mechanism in place must within 6
months of the date of this order must put in place such formula/ mechanism.

Therefore, the Commission clarifies that FPAC exercise is important and should be
implemented and it is irrespective of annual tariff increase.
2.1.438 The derivation of Fuel Price Adjustment Charge (FPAC) is dealt separately in this Order.
2.1.439 As regards to the deriving Cost per million kilocalories for all the fuels, the Commission
is of the view that fuel cost cannot be adjusted on the basis of calorific value of the fuel.
Separate fuel cost is to be dealt with for the power generation plants consuming different
type of fuel and hence it cannot be brought at same platform on the basis of calorific
value. Further, the Commission would like to clarify that the Fuel Supply Aggrements are
based on the weight or Volume and not on Calorific Value basis.






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Regulatory Asset
2.1.440 The issue of Regulatory Asset is dealt with in Regulation No. 13 of the Terms and
Conditions of Tariff Regulations 2005. This issue was also the subject matter of appeal
before the Honble Appellate Tribunal for Electricity arising out of the Commissions
Order No. 3 of 2010 dated 31-07-2011 and the decision of the Appellate Tribunal for
Electricity is extracted below:-

8.4. Let us first examine the provisions of the Tariff Policy in this regard. The
relevant extracts are as under:
8.2.2. The facility of a regulatory asset has been adopted by some Regulatory
Commissions in the past to limit tariff impact in a particular year. This
should be done only as exception, and subject to the following
guidelines:
a. The circumstances should be clearly defined through regulations, and
should only include natural causes or force majeure conditions. Under
business as usual conditions, the opening balances of uncovered gap
must be covered through transition financing arrangement or capital
restructuring;
b. Carrying cost of Regulatory Asset should be allowed to the utilities;
c. Recovery of Regulatory Asset should be time-bound and within a period
not exceeding three years at the most and preferably within control
period;
d. The use of the facility of Regulatory Asset should not be repetitive.
e. In cases where regulatory asset is proposed to be adopted, it should be
ensured that the return on equity should not become unreasonably low
in any year so that the capability of the licensee to borrow is not
adversely affected.
The Tariff Policy stipulates creation of the regulatory asset only as an exception
subject to the guidelines specified above. According to the guidelines the
circumstances under which the regulatory assets should be created are under
natural causes or force majeure conditions.
8.5. Let us now examine Regulation 13 of the 2005 Tariff Regulations of the State
Commission:
13. Regulatory Asset:

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(1) Wherever the licensee could not fully recover the reasonably incurred cost at
the tariff allowed with his best effort after achieving the benchmark
standards for the reasons beyond his control under natural calamities and
force majeure conditions and consequently there is a revenue shortfall and if
the Commission is satisfied with such conditions, the Commission shall treat
such revenue shortfall as Regulatory Asset.
(2) The regulatory asset shall first be adjusted against the contingency reserve.
The balance regulatory asset, if any, will be allowed to be recovered within a
period of three years as decided by the Commission.
(3) The licensee shall intimate the Commission then and there when such
contingency arises.
(4) Any un-recovered gap at the beginning must be covered through transition
financing arrangement or capital restructuring.
Under the State Commissions Regulations also the regulatory asset is to be created
when the licensee is not able to recover the reasonably incurred cost for reasons
beyond its control under natural calamities and force majeure conditions. Further,
the regulatory asset has to be recovered within a period of three years. Admittedly,
in the present case occurrence of natural calamities and force majeure conditions
did not arise.

8.6. Now we shall examine the findings of the State Commission in this regard. The
relevant extracts from the impugned order under paragraph 9.15.3 (9) are
reproduced in paragraph 7.4 above.

8.7. The State Commission has justified creation of the regulatory asset for the
anticipated revenue gap during the control period to prevent the tariff shock.
The order does not clearly state the total amount of the regulatory asset
created but if we add up the projected revenue gap of Rs. 7904.04 Cr., Rs.
6062.24 Cr. and Rs. 3489.18 Cr. for FY 2010-11, 2011-12 and 2012-13
respectively it totals upto Rs. 17445.46 Cr. It is also noticed that the State
Commission has also not provided for any carrying cost on the regulatory
asset and the programme for recovery of the amount to be taken as expenses in
future tariff.


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8.8. We are of the opinion that the regulatory asset created by the State Commission
is not in consonance with the Tariff Policy and its own Regulations. Moreover,
the impugned order does not provide for recovery of the regulatory assets with
the carrying cost as envisaged in the Regulations and the Tariff Policy.

8.9. The State Commission has justified creation of regulatory asset for avoiding
tariff shock. Now, let us examine the increase in tariff decided in the impugned
order. We reproduce below the response of TNEB (Respondent-1) recorded in
the impugned order regarding the tariff increase.

2.27.2 Domestic users consume 15 million units/ day. Individual consumption has
already crossed more than 1000 units, whereas the per capita consumption
envisaged in the 11th Plan is 1000 units only. Last year, the average cost of supply
was Rs.4.70/unit and it is expected to increase to Rs.4.90 / unit. Ason date, the
average recovery is Rs.2.60/unit. For every consumer, the average subsidy is
Rs.2.30/unit. In Tamil Nadu, except Commercial and Industry, other categories
come under subsidized tariff. Out of 2.09 crores consumers, no hike is proposed for
1.65 crores consumers. Out of 1.50 crores domestic consumers, there is no hike for
1.40 crores consumers. Hike is proposed for only 10 to 12 lakh domestic consumers.
The average increase is 65 ps. Only.

Thus, despite huge gap between average cost of supply and average recovery,
TNEB had proposed no hike in tariff for 1.65 crores consumers out of total 2.09
crores consumers i.e. tariff was not to be increased for about 79% of the
consumers. Out of 1.5 Crores domestic consumers no hike was proposed for 1.4
Crores (93%) consumers. In fact, the first respondent withdrew its own petition for
tariff increase for domestic consumers consuming from 201 units to 600 units bio-
monthly and the State Commission permitted the same. In its response to the
comments of the stakeholder the State Commission has recorded in para 2.29.1(6)
of the impugned order that it had proposed to increase tariff only to certain
categories of consumers. We do not understand why no tariff was increased for
majority of consumers even though the Respondent no. 1 was facing huge revenue
gap while it had proposed to carry out a number of system improvement works for
which funds were required and considering that the tariff was being increased after
a span of seven years. When the tariff has not been increased for most of the
consumers, how the creation of the regulatory asset of such high magnitude, that

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too without any direction for its amortization, can be justified on the pretext of
avoiding tariff shock?

8.10. Now, the question arises whether the creation of the regulatory asset is in the
interest of the distribution company and the consumers. The respondent no. 1 will
have to raise debt to meet its revenue shortfall for meeting its O&M expenses,
power purchase costs and system augmentation works. It is not understood how the
respondent no. 1 will service its debts when no recovery of the regulatory asset and
carrying cost has been allowed in the ARR. Thus, the respondent no. 1 will suffer
with cash flow problem affecting its operations and power procurement which will
also have an adverse effect on maintaining a reliable power supply to the
consumers. Thus, creation of the regulatory asset will neither be in the interest of
the respondent no. 1 nor the consumers.
2.1.441 Order No. 3 dated 31-07-2010 had extensively discussed the reasons for the accumulated
losses of the utility as already discussed in the Chapter 1-Introduction. The losses of
TNEB have accumulated over a period of more than ten years. While the load has been
growing continuously, the capacity addition has not kept pace with the increasing
demand. Consequently power was purchased from the market. The tariff has not kept
pace with the increase in costs with tariff revisions only in 2003 and then in 2010. The
gap up to the unbundling of the TNEB on 1-11-2010 is Rs. 17207.30 Crore. Thereafter
the revenue gap up to 31st March 2013 is Rs. Rs. 34503.32 Crore. The Commission had
expressed a view earlier that the accumulated losses up to the date of unbundling will
have to be dealt with in accordance with Para 5.4.3 of the Naional Elelctricity Policy and
Tariff Policy. The provisions of the National Electrcity Policy and Tariff Policy
envisages that the gap at the time of unbundling will have to be sorted out by financial
restructuring and support from the Government rather than passing on the accumulated
losses to the successor entities. The intention of the Tariff Policy is to allow the
unbundled utilities to start on a clean slate. Accordingly, this Commission leaves the
matter of the accumulated losses up to the date of unbundling for resolution by the
Government of Tamil Nadu. The Commissions suggestion to Government of Tamil
Nadu in this regard is that such restructuring of successor entities should not result in
increase in tariff to consumers. The TANGEDCO and TANTRANSCO have also not
claimed any relief of account of accumulated losses prior to unbundling on 1-11-2010 in
this tariff petition.


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2.1.442 After the date of unbundling i.e., with effect from 01-11-2010 and up to the end of this
control period i.e. up to 31-3-2013, the proposed revenue gap is Rs. 34503.32 Crore. Out
of this the proposal of TANGEDCO is to raise additional revenue to the extent of Rs.
9,741.01 Crore by raising the tariff. The uncovered deficit is still Rs. 24762.31 Crore.
The proposal of TANGEDCO is to create Regulatory Asset for this uncovered deficit.
The Commission is concerned with creation of such a large Regulatory Asset especially
when the same is to be amortized during the next three to five years. Even if there is no
other change in the tariff, the regulatory asset alone would be required to be serviced at
Rs. 5,000 to 6,000 Crore every year for the next three to five years. Such an arrangement
may not be workable as the tariffs would become very high and may not really be
necessary subsequent to the amortization of the Regulatory Asset. A practical view needs
to be taken to handle this grave situation. Two Committees constituted by Government of
India are going through these issues. The Shunglu Committee has already submitted its
report. The report of the Chaturvedi Committee is awaited. The Commission is of the
view that the short term borrowings which have been resorted to by the two utilities
should be converted into long term borrowings with appropriate moratorium periods.
Support of the State / Central Governments are also required to be assessed in dealing
with the Regulatory Assets. The Commission would therefore like to obtain the view of
the Government of Tamil Nadu in this regard. The Commission has addressed the
Government of Tamil Nadu on 16-03-2012 on this issue as enclosed Annexure VIII.

Capacity Addition
2.1.443 The Commission has considered energy from all available sources including upcoming
Generating Stations during FY 2012-13. The details of energy available during FY 2012-
13 have been elaborated in the Chapter on Energy Availability in this Tariff Order.
2.1.444 Basin Bridge GTPS (BBGTPS) is a peaking Station in which Naptha is used as fuel.
Since the cost of generation for BBGTPS is high, the Commission has considered the
PLF as approved in the last Tariff Order for FY 2012-13.
2.1.445 The Commission has considered the following capacity addition while calculating energy
availability during FY 2012-13:

Sl. No.
Name of the Generation
Station
Capacity in MW
Commercial Operation
Date
1 North Chennai TPS Unit I 600 October, 2012

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Sl. No.
Name of the Generation
Station
Capacity in MW
Commercial Operation
Date
2 North Chennai TPS Unit II 600 June, 2012
3
Vallur TPS (JV of TNEB
and NTPC)

- Unit I 500 March, 2012
- Unit II 500 February, 2013
- Unit III 500

(Allocation from this station
to Tamil Nadu is 1075 MW)

4 Mettur TPS Stage III 600
300 MW by March 2012;
300 MW by June 2012
5
Nevyeli Lignite
Corporation TS Expansion
II Unit 1 &2 (Allocation to
Tamil Nadu is 195.5 MW)
2 x 250
250 MW by March 2012
and 250 MW by
September 2012
6
MAPS Additional PFBR
Kalpakkam (Allocation of
142 MW to Tamil Nadu)
500 500 MW by May 2012

2.1.446 The Commission observes that there are time-over-runs in Capacity Addition. However
all upcoming Generating Stations are expected to be commissioned during FY 2012-13
and has been considered by the Commission for estimating energy availability.

Power Purchase
2.1.447 The Commission in this Tariff Order has considered the power purchase quantum and
cost on the basis of Merit Order Despatch according to the variable cost of various power
plants.
2.1.448 The Commission has elaborated the details of power purchase allowed from FY 2010-11
to FY 2012-13 in the chapter of Power Purchase Cost.
2.1.449 As regard to earmarking power from Pycara and Kundah small Hydro stations to
agriculture sector, the Commission is of the opinion that the tariff is determined for all
the categories on the basis of the consolidated ARR which is arrived after determination
of various components including power purchase cost as well.
2.1.450 The Commission appreciates the concern of the objectors regarding huge quantum being
purchased from Open Market. The Commission has given specific directive in this regard

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under which TANGEDCO is required to take prior approval from the Commission if the
power purchase quantum and cost from Traders is expected to exceed the specified
quantum and cost for FY 2012-13 in this Order.



Quality of Supply:
2.1.451 The concern expressed by various consumers with regard to the quality of supply is very
relevant. The Commission has already notified the Standards of Performance
Regulations, which stipulate the quality of supply levels to be maintained by the Utility.
While overall standards may be maintained by the Utility, it is quite possible that some
chronic problems may exist in the system. TANGEDCO should take adequate efforts to
attend to these problems.
2.1.452 The common problems expressed by the consumers include low voltage, overloading and
burning of transformers, cable failures, load shedding etc.
2.1.453 While load shedding is directly related to the availability of power and the ability of
TANGEDCO to purchase power at high cost, the other issues are technical in nature and
will need investment in improving last mile connectivity.
2.1.454 The distribution planning to be done by the TANGEDCO, duly taking into account the
requirements of Supply Code, Distribution Code etc. would go a long way in improving
the quality of supply.
2.1.455 The Commission believes that TANGEDCO has its own in-house guidelines with regard
to operation and maintenance of distribution system. Adequate transformation ratio will
have to be created depending on the requirement.
2.1.456 HT/LT ratio needs to be improved.
2.1.457 The distribution transformers are to be metered to get the profile of the voltage, down
time as well as the energy. Normally load on transformers should be limited to the extent
of 80% of the rated capacity to prevent failures.
2.1.458 The cables should be properly selected to prevent overloading and frequent failures. The
voltage at the tail end needs to be monitored at regular intervals. Proactive action on the

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part of TANGEDCO will go a long way in reducing the consumers complaints and
improving their satisfaction.
2.1.459 Erection procedure and safety requirements as per section 53 of Electricity Act, 2003
should be followed in letter and spirit.
2.1.460 As far as consumers are concerned, these complaints could be taken up with the Utility
directly and in the absence of corrective action by TANGEDCO, the issue could be taken
up with the Consumer Grievance Redressal Forum (CGRF) for Redressal of grievances.
In case the consumer is not satisfied with the Order of CGRF, an appeal could be
preferred to the Ombudsman. The Regulations relating to CGRF and Ombudsman could
be referred from the website of the Commission.

Cost to Serve, Average Cost of Supply and Cross Subsidy:
2.1.461 These are inter-related issues. The provisions regarding these three items are extensively
covered in the Order of Honble Appellate Tribunal of Electricity dated 11th January
2012 in Appeal Nos. 57 of 2008, 155 of 2007, 125 of 2008, 45 of 2010, 40 of 2010, 196
of 2009, 199 of 2009, 163 of 2010, 6 of 2011 and 144 of 2010. Para 40 of the said order
is relevant and is extracted below.
17. Section 61(g) of the 2003 Act stipulates that the tariff should progressively
reflect the cost of supply and cross subsidies should be reduced within the time
period specified by the State Commission. The Tariff Policy stipulates the target for
achieving this objective latest by the end of year 2010-11, such that the tariffs are
within 20% of the average cost of supply. In this connection, it would be
worthwhile to examine the original provision of the Section 61(g). The original
provision of Section 61(g) the tariff progressively reflects the cost of supply of
electricity and also, reduces and eliminates cross subsidies within the period to be
specified by the Appropriate Commission was replaced by the tariff progressively
reflects the cost of supply of electricity and also reduces cross subsidies in the
manner specified by the Appropriate Commission by an amendment under
Electricity (Amendment) Act, 2007 w.e.f. 15.6.2007. Thus the intention of the
Parliament in amending the above provisions of the Act by removing provision for
elimination of cross subsidies appears to be that the cross subsidies may be reduced
but may not have to be eliminated. The tariff should progressively reflect the cost of
supply but at the same time the cross subsidy, though may be reduced, may not be

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eliminated. If strict commercial principles are followed, then the tariffs have to be
based on the cost to supply a consumer category. However, it is not the intent of the
Act after the amendment in the year 2007 (Act 26 of 2007) that the tariff should be
the mirror image of the cost of supply of electricity to a category of consumer.

18. Section 62(2) provides for the factors on which the tariffs of the various
consumers can be differentiated. Some of these factors like load factor, power factor,
voltage, total electricity consumption during any specified period or time or
geographical position also affects the cost of supply to the consumer. Due weightage
can be given in the tariffs to these factor to differentiate the tariffs.

19. The National Electricity Policy provides for reducing the cross subsidies
progressively and gradually. The gradual reduction is envisaged to avoid tariff
shock to the subsidized categories of consumers. It also provides for subsidized tariff
for consumers below poverty line for minimum level of support. Cross subsidy for
such categories of consumers has to be necessarily provided by the subsidizing
consumers.

20. The Tariff Policy clearly stipulates that for achieving the objective, the State
Commission has not been able to establish that the tariff progressively reflects the
cost of supply of electricity, latest by the end of the year 2010-11, the tariffs should
be within 20% of the average cost of supply, for which the State Commission would
notify a road-map. The road map would also have intermediate milestones for
reduction of cross subsidy.

21. According to the Tariff Regulation 7 (c) (iii) of the State Commission the cross
subsidy has to be computed as difference between cost-to-serve a category of
consumer and average tariff realization of that category.
22. after cogent reading of all the above provisions of the Act, the Policy and the
Regulations we infer the following:

i) The cross subsidy for a consumer category is the difference between cost to serve
that category of consumers and average tariff realization of that category of
consumers. While the cross-subsidies have to be reduced progressively and
gradually to avoid tariff shock to the subsidized categories, the cross-subsidies may
not be eliminated.

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ii) The tariff for different categories of consumer may progressively reflect the cost
of electricity to the consumer category but may not be a mirror image of cost to
supply to the respective consumer categories.

iii) Tariff for consumers below the poverty line will be at least 50% of the average
cost of supply.

iv) The tariffs should be within 20% of the average cost of supply by the end of
2010-11 to achieve the objective that the tariff progressively reflects the cost of
supply of electricity.

v) The cross subsidies may gradually be reduced but should not be increased for a
category of subsidizing consumer.

vi) The tariffs can be differentiated according to the consumers load factor, power
factor, voltage, total consumption of electricity during specified period or the time or
the geographical location, the nature of supply and the purpose for which electricity
is required.

Thus, if the cross subsidy calculated on the basis of cost of supply to the consumer
category is not increased but reduced gradually, the tariff of consumer categories is
within 20% of the average cost of supply except the consumers below the poverty
line, tariffs of different categories of consumers are differentiated only according to
the factors given in Section 62(3) and there is no tariff shock to any category of
consumer, no prejudice would have been caused to any category of consumers with
regard to the issues of cross subsidy and cost of supply raised in this appeal.

29. The State Commission has indicated in the impugned order that the voltage-
wise cost determination is the first step in determining the consumer-wise cost of
supply but has expressed difficulties in determination of voltage-wise cost of supply
due to non-segregation of costs incurred by the licensee related to different voltage
levels and determination of technical and commercial losses at different voltage
levels due to non-availability of meters. The State Commission has also noted that
the data submitted by the distribution licensee does not have technical or
commercial data support.

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30. It is regretted that even after six years of formation of the Regulations data for
the distribution losses. The position of metering in the distribution system of
respondent no. 2 is pathetic. Only about 1/4th of 11 KV feeders have been metered
and very small numbers of transformers have been provided with meters. Only 68%
of the consumer meters are functional in the distribution system as indicated in
Table-37 of the impugned order. It is also noticed that a large number of meters are
old electro mechanical meter which are not functioning. This is in contravention to
Section 55 of the Act. Section 55(1) specifies that no licensee shall supply electricity
after the expiry of two years from the appointed data, except through installation of
a correct meter in accordance with the Regulations of the Central Electricity
Authority. According to Section 55(2) meters have to be provided for the purpose of
accounting and audit. According to Section 8.2.1 (2) of the Tariff Policy, the State
Commission has to undertake independent assessment of baseline data for various
parameters for every distribution circle of the licensee and this exercise should be
completed by March, 2007. In our opinion the State Commission can not be a silent
spectator to the violation of the provisions of the Act. In view of large scale
installation of meters, the State Commission should immediately direct the
distribution licensee to submit a capital scheme for installation of consumer and
energy audit meters including replacement of defective energy meters with the
correct meters within a reasonable time schedule to be decided by the State
Commission. The State Commission may ensure that the meters are installed by the
distribution licensee according to the approved metering scheme and the specified
schedule. In the meantime, the State Commission should institute system studies for
the distribution system with the available load data to assess the technical
distribution losses at different voltage levels.

31. We appreciate that the determination of cost of supply to different categories of
consumers is a difficult exercise in view of non-availability of metering data and
segregation of the network costs. However, it will not be prudent to wait indefinitely
for availability of the entire data and it would be advisable to initiate a simple
formulation which could take into account the major cost element to a great extent
reflect the cost of supply. There is no need to make distinction between the
distribution charges of identical consumers connected at different nodes in the
distribution network. It would be adequate to determine the voltage-wise cost of
supply taking into account the major cost element which would be applicable to all

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the categories of consumers connected to the same voltage level at different
locations in the distribution system. Since the State Commission has expressed
difficulties in determining voltage wise cost of supply, we would like to give
necessary directions in this regard.

32. Ideally, the network costs can be split into the partial costs of the different
voltage level and the cost of supply at a particular voltage level is the cost at that
voltage level and upstream network. However, in the absence of segregated network
costs, it would be prudent to work out the voltage-wise cost of supply taking into
account the distribution losses at different voltage levels as a first major step in the
right direction. As power purchase cost is a major component of the tariff,
apportioning the power purchase cost at different voltage levels taking into account
the distribution losses at the relevant voltage level and the upstream system will
facilitate determination of voltage wise cost of supply, thoughnot very accurate, but
a simple and practical method to reflect the actual cost of supply.

33. The technical distribution system losses in the distribution network can be
assessed by carrying out system studies based on the available load data. Some
difficulty might be faced in reflecting the entire distribution system at 11 KV and 0.4
KV due to vastness of data. This could be simplified by carrying out field studies
with representative feeders of the various consumer mix prevailing in the
distribution system. However, the actual distribution losses allowed in the ARR
which include the commercial losses will be more than the technical losses
determined by the system studies. Therefore, the difference between the losses
allowed in the ARR and that determined by the system studies may have to be
apportioned to different voltage levels in proportion to the annual gross energy
consumption at the respective voltage level. The annual gross energy consumption at
a voltage level will be the sum of energy consumption of all consumer categories
connected at that voltage plus the technical distribution losses corresponding to that
voltage level as worked out by system studies. In this manner, the total losses
allowed in the ARR can be apportioned to different voltage levels including the EHT
consumers directly connected to the transmission system of GRIDCO. The cost of
supply of the appellants category who are connected to the 220/132 KV voltage may
have zero technical losses but will have a component of apportioned distribution
losses due to difference between the loss level allowed in ARR (which includes

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commercial losses) and the technical losses determined by the system studies, which
they have to bear as consumers of the distribution licensee.

34. Thus Power Purchase Cost which is the major component of tariff can be
segregated for different voltage levels taking into account the transmission and
distribution losses, both commercial and technical, for the relevant voltage level and
upstream system. As segregated network costs are not available, all the other costs
such as Return on Equity, Interest on Loan, depreciation, interest on working capital
and O&M costs can be pooled and apportioned equitably, on pro-rata basis, to all
the voltage levels including the appellants category to determine the cost of supply.
Segregating Power Purchase cost taking into account voltage-wise transmission and
distribution losses will be a major step in the right direction for determining the
actual cost of supply to various consumer categories. All consumer categories
connected to the same voltage will have the same cost of supply. Further,
refinements in formulation for cost of supply can be done gradually when more data
is available.
2.1.462 The judgment of the Apex Court regarding the withdrawl of Cross subsidy for West
Bengal Electricity Regulatory Commission (WBERC) Vs. West Bengal High Court and
CESC Ltd. was prior to the Electricity Act 2003. The judgment was issued on 03-10-
2002. Hence, the directions of Electricity Act 2003 and Electricity (Amendment) Act
2003 with effect from 15-6-2007 would be applicable which says:
Section 39. (State Transmission Utility and functions):

Provided further that such surcharge and cross subsidies shall be progressively
reduced in the manner as may be specified by the State Commission
2.1.463 Cost to Serve, Average Cost of Supply and Cross Subsidy are also discussed extensively
in the above referred Order of the Honble Appellate Tribunal of Electricity in
paragraphs, 36, 37, 38 and 39. The Honble Appellate Tribunal of Electricity had
expressed the opinion that consequent to the Electricity (Amendment) Act 2003 with
effect from 15-6-2007, elimination of cross subsidy has been omitted which implies that
the tariff for a particular category of consumers need not be the mirror image of cost to
serve. Provisions of Tariff Policy envisage that the tariff for various categories of
consumers shall be within +/- 20% of the average cost of service. A conjoint reading of

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the Electricity Act 2003 after the amendment in the year 2007 with the other provisions
of the Act as well as the Tariff Policy, the intent of the Act seems to be that the tariff
need not be the mirror image of the cost of supply of electricity to a category of
consumers. The applicable portion of the Judgment which is contained in para 22 of the
decision of the Honble Appellate Tribunal of Electricity in Appeals No. 102, 103 and
112 of 2010 rendered on 30th May 2011 is extracted below:
22. After cogent reading of all the above provisions of the Act, the Policy and the
Regulations we infer the following:
i. The cross subsidy for a consumer category is the difference between cost to serve
that category of consumers and average tariff realization of that category of
consumers. While the cross-subsidies have to be reduced progressively and
gradually to avoid tariff shock to the subsidized categories, the cross-subsidies may
not be eliminated.
ii. The tariff for different categories of consumer may progressively reflect the cost of
electricity to the consumer category but may not be a mirror image of cost to supply
to the respective consumer categories.
iii. Tariff for consumers below the poverty line will be at least 50% of the average cost
of supply.
iv. The tariffs should be within 20% of the average cost of supply by the end of 2010-
11 to achieve the objective that the tariff progressively reflects the cost of supply of
electricity.
v. The cross subsidies may gradually be reduced but should not be increased for a
category of subsidizing consumer.
vi. The tariffs can be differentiated according to the consumers load factor, power
factor, voltage, total consumption of electricity during specified period or the time
or the geographical location, the nature of supply and the purpose for which
electricity is required.
Thus, if the cross subsidy calculated on the basis of cost of supply to the consumer
category is not increased but reduced gradually, the tariff of consumer categories is
within 20% of the average cost of supply except the consumers below the poverty line,
tariffs of different categories of consumers are differentiated only according to the
factors given in Section 62(3) and there is no tariff shock to any category of consumer,
no prejudice would have been caused to any category of consumers with regard to the
issues of cross subsidy and cost of supply raised in this appeal.

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29. The State Commission has indicated in the impugned order that the voltage-wise
cost determination is the first step in determining the consumer-wise cost of supply but
has expressed difficulties in determination of voltage-wise cost of supply due to non-
segregation of costs incurred by the licensee related to different voltage levels and
determination of technical and commercial losses at different voltage levels due to non-
availability of meters. The State Commission has also noted that the data submitted by
the distribution licensee does not have technical or commercial data support.
(1) From the above it can be seen that the following are the tests for deciding the tariff in
compliance of the Electricity Act, Tariff Policy and Regulations of the Commission.

1. The Cost of service for each category of consumer will have to be worked out
separately.
2. The cross subsidy should be going down from year to year.
3. The tariff fixed for various categories should be within +/- 20% of the average cost
of service.
4. Tariff need not be a mirror image of cost to supply to the respective consumer
categories.
5. Tariff for different categories of consumers are differentiated only according to the
factors give in Section 62(3).
6. There is no tariff shock to any category of consumer.

(2) If the above are carried out and the tariff decided accordingly, no prejudice would
have been caused to any category of consumers with regard to the issues of cross-
subsidy and cost of supply.

Renewable Energy
2.1.464 Banking of wind energy and related issues are not under the purview of existing tariff
determination process.
Power Supply
2.1.465 The Commission recognizes the power cuts for the HT industry under Restriction &
Control (R&C) which were specified by Government of Tamil Nadu by the policy
directives in letter Ms. 121 Energy dated 22-10-2008, as below:
4.2.2. Present R&C Measures:

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20% cut on base Demand & Energy for HT Industrial and Commercial Services
from 10.05.2011. (Partially relaxed for willing HT consumers with effect from
08.08.2011 up to September 2011 during 22:00 Hours to 05.00 Hours using Wind
energy).
The Commission in its Order M.P. no. 15 of 2011 dated 22-03-2012, regarding lifting of
R&C measures has stated that:
Normal Hours: The load relief available corresponding to 40% restriction is 800
MW. With the commissioning of every 400 MW capacity, 200 MW relief shall be
provided during the normal hours i.e. R & C measures shall be reduced to 30% from
40% with addition of 400 MW installed capacity. 10% additional relief in R & C will
be provided with the capacity addition of 400 MW of conventional power capacity.
Thus the entire restriction and control measures during the normal hours shall stand
lifted when 1600 MW of conventional capacity is added to the Tamil Nadu Electricity
System.
Evening Peak Hours: 90% restriction as existing today provides a relief of 700 to
800 MWs. With commissioning of every 400 MW of conventional capacity, 200 MW
relief shall be provided in the restriction and control during evening peak hours. In
effect, with the addition of 1600 MW of additional conventional power generation,
the entire R & C measures of 90% during evening peak hours shall stand withdrawn.
In this arrangement, the consumers who own captive generation, both wind and other
types of generation, would get the relief earlier during the wind season commencing
from May onwards. The Commission believes that this will be a fair approach to
lifting R & C measures for HT consumers both industrial and commercial. This
arrangement would also be providing some relief to other consumers who face load
shedding. The expectations of new consumers who are waiting in the queue for new
connections could also be satisfied to some extent.
2.1.466 As regards to uninterrupted power supply, the Commission directs TANGEDCO to
maintain quality of supply as specified in Tamil Nadu Electricity Distribution Standards
of Performance Regulations dated 21-07-2004 in which it is specified that
3. Quality of Service
Quality of service means providing uninterrupted, reliable electric supply at stipulated
voltage and frequency, which will be the end result of its planning, designing of
network, operation and service management to ensure stability in supply and prompt
compliance of consumers complaints on metering and billing. The supply with

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frequent power failure, fuse of calls, voltage fluctuations will not ensure continuity in
supply. These factors determine the degree of satisfaction of the consumers.
Also, the Commission feels that if the capacity addition would be on time, as
discussed in later chapters, the power supply situation should improve.

Demand Side Management, Energy Efficiency
2.1.467 Demand Side Management is an effective tool to meet the demand supply position in
the short term. Being a cheaper option, it helps in meeting the demand as compared to
capacity addition. Also, it enables to reduce the carbon emission and defers the
investment to subsequent years.

2.1.468 It is necessary to create awareness among users for promoting Energy Conservation and
Demand Side Management.
2.1.469 TANGEDCO should motivate the domestic and agriculture sector to adopt DSM
measures. Awareness has to be created for using Star Labelled Appliances which may
cost more but would pay back by way of energy saving.
2.1.470 TANGEDCO is suggested to submit relevant schemes for implementing DSM and
Energy Efficiency schemes to the Commission.
2.1.471 Use of CFLs should be encouraged with adequate arrangement for disposal of
unserviceable CFLs.

Metering and Energy Audit
2.1.472 Section 55 of the Electricity Act envisages that all connections shall be energised through
a correct meter. The relationship between Utility and the Consumer is through the meter.
The specification of meters has already been laid down by Regulations of the Central
Electricity Authority (CEA) in accordance with the Act. The Commission in its last Tariff
Order No. 3 of 2010 dated 31-07-2010 had directed TANGEDCO to submit a time bound
program for 100% metering which was not submitted within the time frame of six
months. This should be submitted within 3 months of the issue of this Order.
2.1.473 TANGEDCO should implement SCADA/ data management system which will enable
carrying out Energy Audit and Demand Side Management. The Commission in its last

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Tariff Order has asked TANGEDCO to submit the Study for Assessment of Transmission
& Distribution (T&D) Losses. TANGEDCO should submit the study so as to properly
assess the power purchase to be allowed for an estimated sales projection.
2.1.474 As regards to the metering of huts, the Commission is of the view that hut consumption
should be metered. Metering should be done as otherwise it distorts the subsidy
payments.
2.1.475 TANGEDCO should provide sub meters with AMR facility and additional modems to the
commercial and industrial consumers. This would help in bringing down the loss levels.
APDRP funds should be utilized properly for this purpose.
2.1.476 The Commission observes that feeder level metering and DT metering has not been
100% achieved as directed by the Commission in its Tariff Order dated 31-07-2010. The
Commission also considers the consumption of unmetered Agriculture services based on
scientific sampling for this Order. The study report of Anna University on Transmission
& Distribution losses shall be submitted to the Commmission upto 30
th
November 2012.
2.1.477 The Regulation issued by the CEA envisages installation of Static Meters for all
consumers. The Static meters will help in reduction of tampering, identifying various
parameters, downloading of data, introduction of time of the day tariff etc. besides
reducing billing errors.

Tariff categorization
2.1.478 Tariff categorization is dealt with in detail within the tariff schedule.
2.1.479 In this context, quite a few consumers have been representing before the Commission
during the Public Hearings, stating that they are not undertaking any commercial
activity or activities for making profit within their premises, and hence, they should not
be classified under the commercial category. It is clarified that the Commercial
category actually refers to all non-residential, non-industrial purpose, or which has not
been classified under any other specific category. For instance, all office establishments
(whether Government or private), hospitals, educational institutions, airports, bus-stands,
multiplexes, shopping malls, small and big stores, automobile showrooms, etc., are all
covered under this categorisation, since they cannot be termed as residential or industrial.


91 | P a g e

2.1.480 The Commission issued a clarificatory Order no. 3-1 of 2010 dated 08-11-2010 where in
the Commission clarified various categories of services which are covered under each
group of Information Technology services.
2.1.481 Health care service providers have referred to a Supreme Court judgement in 2005 which
states that health care providers should not be treated as commercial entities. The
Commission has perused the judgement and observes that the judgement relates to the
occupation carried on by individual professionals such as doctors, lawyers, chartered
accountants in their individual capacity and not for nursing homes/hospitals.
2.1.482 As regards submission by different consumers for creation of new categories is to protect
their own interest, the past experience has shown that whenever the Commission created
some new categories, the same was challenged on the ground that such creation of new
category was neither proposed by the Utility nor the public or the concerned consumer
was put to notice. In the result such matters were remanded to the Commission for
reconsideration by the concerned Apellate authorities. Hence, in case the distribution
licencee feels the justification and necessity for the creation of a new category, then it
should submit the necessary data on consumer and consumption pattern and also ensure
that the categorisation is in accordance with the criteria for differentiation provided under
Section 62(3) of the EA 2003, for the Commission's consideration.
2.1.483 A similar impression is conveyed as regards the Industry categorisation, with the
Commission receiving several representations during and before the Public Hearings,
from the AAI, stating that they have also been classified as industry for the purpose of
taxation and/or other benefits being extended by the Central Government or State
Government, and hence, they should also be classified as industry for the purpose of
tariff determination. In this regard, it is clarified that classification as Industry for tax
purposes and other purposes by the Central or State Government shall apply to matters
within their jurisdiction and have no bearing on the tariffs determined by the Commission
under the EA 2003, and the import of the categorisation under Industry under other
specific laws cannot be applied to seek relief under other statutes. Broadly, the
categorisation of Industry is applicable to such activities, which entail manufacture.
While appreciating the anxiety of different classes of consumers to reduce their payments
on account of use of electricity, the reasonable costs incurred by the Utilities have to be
recovered irrespective of the number of consumer categories or the sub-classification
considered in accordance with the provisions of Section 62(3) of the EA 2003. The

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Commission is of the view that services defined under ESMA 1968 do not automatically
qualify the consumer to be cateogrized under Industrial category.



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3 ENERGY SALES
3.1.1 Tamil Nadu Generation and Distribution Company Limited (TANGEDCO), in its
Petition submitted the actual energy sales for various categories during FY 2010-11 and
the projection towards FY 2011-12 and FY 2012-13. In this Section, the Commission has
analysed the sales and Distribution Loss trajectory from FY 2010-11 to FY 2012-13. On
the basis of approved sales and Distribution Loss, the Commission has approved the
energy balance.
Energy Sales:
3.1.2 The Commission in its previous Tariff Order has approved the category-wise energy sales
after considering the past trends. The category-wise energy sales approved for FY 2010-
11 to FY 2012-13 are tabulated below:
Table 1: Energy Sales for various consumer categories approved in the last Tariff Order
(MU)
Sl. No.
Consumer
Category
Tariff FY10 FY 11 FY 12 FY 13
I
High Tension
1 Industries I 14820 16055 17392 18841
2
Government
Educational
Institutions etc.
II A 970 1034 1102 1175
3
Place of Public
Worship
II B 4 4 4 4
4 Commercial III 1600 1744 1901 2072
5 Lift Irrigation IV 9 9 9 9
6
Supply to
Puducherry
V
7
Sale to Other
States



Total HT

17403 18846 20408 22101

Low Tension


1 Domestic I A 15535 16282 17065 17886
2 Huts I B 393 411 428 447
3 Bulk Supply I C 3 4 5 6
4
Public Lighting
& Water Supply
II A 1540 1581 1625 1669

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Sl. No.
Consumer
Category
Tariff FY10 FY 11 FY 12 FY 13
5
Government
Educational
Institutions, etc.
II B 357 386 416 450
6
Places of Public
Worship
II C 93 98 104 110
7
Cottage & Micro
Enterprises
III A-1 111 117 122 128
8 Power Loom III A-2 822 855 889 924
9 Industries III B 3942 4089 4242 4401
10 Agriculture IV 10976 11206 11436 11666
11 Commercial V 4257 4555 4874 5215
12
Temporary
Supply
VI 11 19 33 56

Total LT

38040 39603 41239 42958

Grand Total

55443 58449 61647 65059

3.1.3 TANGEDCO in its Petition submitted that the load forecast has been done after taking
into account the economic growth and other factors that affect electricity consumption in
the major categories of load. TANGEDCO further submitted that it has attempted to
refine the forecasts in the wake of economic outlook for the State and check that they are
consistent with the likely movements of the principle macroeconomic parameters of
demand. The basic parameters underlying load forecast by TANGEDCO are:
Sales data up to FY 2010 has been used for analysis
Managing agricultural demand
Rationalization of tariffs which included incentive structure for HT consumers,
increase in tariffs at inflationary level for subsidizing categories and increase in
tariffs for subsidized categories including agriculture.
3.1.4 TANGEDCO has submitted the following approach for development of the load forecast
for each category:
a) Domestic or Residential: The domestic load has been expected to grow with the increase in
population as well as growth in per capita income. The past trend showed increase of demand
in this category. TANGEDCO submitted the growth trend in consumption by domestic
consumers as the quality of life increases, thereby increasing energy requirement as well.
Also, consumers may shift from Huts category to domestic category.

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b) Commercial: The Commercial load is expected to grow again with the increase in
population as well as increased spending. Tamil Nadu primarily being to a large extent a
service economy, commercial demand growth has been expected to continue growing during
the projection period.
c) Industrial Load (Low, Medium, High): The Industrial load would depend upon the capital
formulation as well as the growth in manufacturing sector. The effect of captive generation
has also been a major parameter in determining the future demand growth in industrial HT
sector. It further submitted that the past trends have shown small increase YOY growth rate
in industrial HT demand, though industrial LT demand has shown reasonable growth. With
measures to retain HT clients and neutralize the impact of captive generation, HT demand is
expected to grow at a low YOY rate.
d) Public Lighting, water works, etc.: The load growth for Public Lighting, Water works etc.
has been expected to depend upon the spending of Government for social services. During
the past, YOY growth rate has shown a significant increase in load growth. The previous
year rates have been taken as an indicative benchmark for projecting growth in this category.
e) Agriculture: TANGEDCO has nearly 20 lakh agricultural consumers with a connected load
of 103.30 lakh HP. TANGEDCO further estimated an increase of 40000 agricultural
connections per year.
3.1.5 Based upon above TANGEDCO in their Petition has projected the sales from FY 2010-
11 to FY 2012-13 for various consumer categories which is tabulated below:
Table 2: Energy Sales from FY 2010-11 to FY 2012-13
(MU)
S.
No
Category Tariff FY 2010-11 FY 2011-12 FY 2012-13

High Tension
Category

No. of
Consumers
Estimated
Consumption
(MU)
No. of
Consumer
s
Estimated
Consumption
(MU)
No. of
Consumer
s
Estimated
Consumpti
on
(MU)
1 HT Industries, I-A 5359 16817 5413 19155 5521 21645
2
Railway
Traction
I-B 21 485 21 494 23 549
3
Government
Educational
Institutional Etc.
(HT)
II-A 643 903 643 911 649 929

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S.
No
Category Tariff FY 2010-11 FY 2011-12 FY 2012-13
4
Pvt. Educational
Institutions etc.
II-B 212 155 212 157 214 163
5
Places of Public
Worship
II-C 6 3 6 3 7 3
6
Commercial and
Other HT
III 1470 1906 1544 2211 1621 2498
7
Lift irrigation
and co-ops (HT)
IV 12 7 12 8 13 8
8
Supply to Other
States
413 413 425

Low Tension
Category

9 Domestic I-A 15061518 16249 15739286 17550 16445796 18610
10 Huts I-B 1420109 350 1519517 385 1625883 424
11
Defence
Colonies etc
I C 715 10 794 10 894 13
12
Public Lighting
& water works
II-A 439348 1597 477722 1709 497216 1942
13
Government
Educational
Institution
II-B 1 42000 219 43050 221 44520 223
14
Pvt. Educational
Institutions
II B-2 74054 149 75905 150 78591 300
15
Places of Public
Worship (LT)
II-C 131869 98 138462 106 145386 114
16
Cottage and
Tiny Industries
IIIA(1) 72370 122 79607 125 87568 128
17 Power Loom IIIA(2) 124026 822 131468 873 139356 925
18 Industries III-B 276513 4418 363123 4529 372201 4891
19
Agriculture &
Government
seed farm
IV 1922400 10417 1949164 10903 1973528 11546
20
Commercial and
Other
V 2252596 4592 2760421 4914 2870838 5258
21
Temporary
Supply
VI 3450 16 3700 17 4200 18

Total
Consumption
21848691 59750 23290069 64843 24292341 70342

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Commissions View:
3.1.6 The Commission observed the past trends for projection of sales of various consumer
categories. The Commission has also studied the methodology adopted by TANGEDCO
for projection of various consumer categories. Accordingly the Commission has
projected the sales of various consumer categories as detailed below:
Sales for Consumer under Metered Categories
3.1.7 As regards sales for various consumer categories in FY 2010-11, TANGEDCO has
submitted category-wise actual energy sales. In reply to data gaps raised by the
Commission, TANGEDCO submitted revised Form-19 on March 6, 2012. The
Commission observed that the energy sales on account of various consumer categories
during FY 2010-11 were also revised by TANGEDCO. Since this is the latest submission
of TANGEDCO, the Commission has considered the revised sales for all metered
categories as submitted in revised Form-19.
3.1.8 For FY 2011-12, TANGEDCO in reply dated March 4, 2012 to data gaps raised by the
Commission submitted the category-wise actual energy sales for first ten months, i.e.,
from April 2011 to January 2012 and projections for next two months, i.e., February 2012
and March 2012. Since TANGEDCO has submitted the actual energy sales for various
consumer categories during first ten months and projections for next two months, the
Commission has considered the same for all consumer categories except agriculture
consumption and Hut Consumption in FY 2011-12.
3.1.9 During discussion with TANGEDCO officials on the clarification sought by the
Commission on wheeling adjustment amount claimed as a part of power purchase cost, it
was observed that the captive consumption through wheeling by various sources like
Wind, Cogeneration, Captive Power Plants, etc., are booked under power purchase as
well as Sale of power. In reply to data gaps raised by the Commission, TANGEDCO
segregated wheeling undertaken for various categories of consumers, which is tabulated
below:




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Table 3: Energy on account of wheeling
(MU)
Category
Sales incl. Wheeling Sales excl. Wheeling Wheeling Breakup
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
HT I
Industry 16817 16718 21707 11968 10338 15707 4849 6380 6000
HT II
B
Pvt
Educational
Inst. etc.
155 232 240 148 221 230 7 11 10
HT
III
Commercial 1906 1916 2498 1756 1637 2248 150 279 250

Total 18878 18867 24445 13872 12197 18185 5006 6670 6260

3.1.10 Based on detailed analysis of the data submitted by TANGEDCO, the Commissions
observations on treatment of wheeling energy done by TANGEDCO are as under:
a. Wind Energy: Quantum of wheeled energy was included in the Power Purchase quantum
and added equal quantum of energy in the Sales . For cost part, TANGEDCO has
considered at Rs 4/kWh and also deemed revenue from sale of power was included in
Form 19. This overstatement of sales on account of wheeling energy led to
understatement of T&D loss.

The Commission would like to take an illustration to explain its view on this wheeling
adjustment practice. For example: The energy consumption of a consumer is 150 MU
out of which 50 MU is wheeled back to the Utility. The same consumer raises a credit
note of 50 MU and the Utility charges the consumer only for 100 MU, i.e, net of wheeled
energy. At the time of ARR, the Utility claims 150 MU out of which 100 MU is direct
sales and rest 50 MU is sales on account of wheeling. Similarly in power purchase cost
the Utility claims cost pertaining to 150 MU instead of 100 MU. By this method the T&D
Loss appears less and at the same time, the Utility is claiming additional revenue on the
wheeling sales and power purchase cost on account of wheeled energy. This does not
give true picture of sales, power purchase quantum, power purchase cost, revenue and
T&D Loss.
This adjustment also has an impact on revenue from sale of power where the revenue is
also over projected on account of higher sales.

b. Cogen, Captive Power Plants and other Wheeling sales: Quantum of wheeled energy was
not included in the Power Purchase quantum but TANGEDCO added wheeled quantum

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of energy in the Sales. For cost part, TANGEDCO has considered at Rs 4/kWh and
shown as a wheeling adjustment in Form 6 of the Petition and also deemed revenue from
sale of power considered at Rs 4/kWh was included in Form 19. The Commission found
that this inconsistent approach is followed by TANGEDCO for wheeling from Wind and
other sources. This overstatement of sales on account of wheeling energy led to
understatement of T&D loss.
c. No wheeling loss was deducted from wheeled energy injected in the system, which was
shown in revised Form 6.
3.1.11 Let us also try to understand as to how actually the billing of a wheeling consumer works.
Let us take an example of a captive consumer, say a Captive consumer has a requirement
of 100 MU in a month and credit that is available to him on part of his own wind
generation is say 50 MU after adjusting 5% wheeling loss. In this case, the Utility will
raise the bill for the net energy consumed, i.e., 50 MU by the Captive Consumer for that
month. However, in this case the TANGEDCO is raising the bill to the captive consumer
for 50 MU, but at the same time raising a book entry of deemed revenue for sales of
another 50 MU totalling 100 MU.
Wheeling is defined in Electricity Act 2003 as under:
Wheeling means the operation whereby the distribution system and associated facilities
of a transmission licensee or distribution licensee, as the case may be, are used by
another person for the conveyance of electricity on payment of charges to be determined
under section 62

As regards Open Access, Section-42 (3) of Electricity Act 2003 states as under:
42 (1)

(3) Where any person, whose premises are situated within the area of supply of a
distribution licensee, (not being a local authority engaged in the business of
distribution of electricity before the appointed date) requires a supply of electricity
from a generating company or any licensee other than such distribution licensee, such
person may, by notice, require the distribution licensee for wheeling such electricity in
accordance with regulations made by the State Commission and the duties of the
distribution licensee with respect to such supply shall be of a common carrier
providing non-discriminatory open access


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3.1.12 As regards Transmission and Wheeling Charges, the Commission in its Tariff Order
(Order No. 1 of 2009) dated March 20, 2009 ruled as under:
8.3 Transmission and Wheeling Charges
The transmission and wheeling charges were initially fixed by the TNEB at 2% in
1986 The charges were enhanced to 5% by the TNEB in September 2001. They
remained at that level till 2006. The Commission adopted the same rate of 5%
towards the transmission and wheeling charges including line losses in order
No.3 dated 15-5-2006. The TNEB has now pleaded for stepping up the charges to
15% on the ground that transmission and distribution losses have gone up in the
recent years. The transmission and distribution losses of the TNEB has remained
static at 18% since 2003 and therefore, the Commission does not see merit in the
plea of the TNEB to abruptly raise the charges to 15%. The Commission decides
to retain the wheeling and transmission charges including line losses at 5%
uniformly for captive use and third party sale of wind energy in the case of HT /
EHT consumption. However, the charges in regard to captive use and third party
sale in LT services are fixed at 7.5%.
3.1.13 Similarly for Biomass and Cogeneration based power plants, the Commission in its Tariff
Order dated April 27, 2009 and May 6, 2009 approved the same line loss of 5%
uniformly for captive use and third party sales.
3.1.14 For CPP, the actual loss for the injection at 110 kV and drawal at 11 kV is 6.25%. In case
of IEX the power is injected into the grid and then drawal is done at 11 kV which results
in wheeling loss as 5.5%. Thus wheeling loss should be charged accordingly.
3.1.15 The Commission is of the view that the inclusion of energy on account of captive
consumption through wheeling in sales and power purchase is not correct and should be
treated in kind.
3.1.16 The Commission has considered the quantum which was submitted by TANGEDCO on
account of wheeled energy by Wind, Biomass, Cogen, Captive Power Plants and has
applied 5% wheeling as an illustration in absence of proper segregation of data regarding
wheeled energy included in Power Purchase and Sales. Once the segregated data is made
available by TANGEDCO, the Commission will consider the same. The Commission
directs TANGEDCO to submit the detailed segregation of wheeled energy included in
power purchase and sales in next Tariff determination process.


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3.1.17 The wheeled energy which has been deducted by the Commission from energy sales in
FY 2010-11 and FY 2011-12 has been tabulated as under:
Table 4: Wheeled Energy included in sales
(MU)
S. No
Particulars Units FY 11 FY 12 FY 13
1
Quantum on account of wheeling of cogeneration, biomass
CPP etc.
MU 946 1073 1218
2 Quantum on account of wheeling of Wind Energy MU 3169 3942 4141
3
Quantum on account of wheeling of Open Access
Consumers, Reliability Power & TPS
MU 892 1654 900
4 Total Quantum on account of wheeling MU 5006 6670 6260
5 Wheeling loss % 5% 5% 5%
6 Total sales on account of wheeling MU 4756 6337 5947
3.1.18 The Commission has further divided the sales on account of wheeling as shown in the
above table in the ratio submitted by TANGEDCO for the identified consumer
categories. The wheeled energy as deducted by the Commission from the consumer
categories identified by TANGEDCO is tabulated below:
Table 5: Sales deducted on account of wheeling from various Consumer Categories
(MU)
Category
Wheeling Sales
FY 11 FY 12
HTI A Industry
4607 6061
HT II B Pvt Educational Inst. etc. 6.65 10
HT III Commercial
143 265
Total
4756 6337
3.1.19 The Commission has deducted the above energy from the sales approved for respective
consumer categories in FY 2010-11 and FY 2011-12.
3.1.20 The energy sales for various consumer categories as approved by the Commission in this
Order for FY 2010-11 and FY 2011-12 is tabulated below:





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Table 6: Energy sales approved for FY 2010-11 and FY 2011-12
(MU)
Particulars
TANGEDCO Actuals Commission
2010-11 2011-12 2010-11 2011-12 2010-11 2011-12
HT Category


I-A Industries
16817 19155
16817 16718
12210 10657
I-B Railway Traction
485 494
485 654
485 654
II-A
Govt. Educational Instns.
Etc. 903 911
903 882
903 882
II-B Pvt Educational Inst. etc.
155 157
155 232
148 222
II-C Place of Worship
3 3
3 5
3 5
III Commercial
1906 2211
1906 1916
1763 1651
IV Lift Irrigation
7 8
7 6
7 6
V
Supply to Puducherry and
Other States 413 413


LT
Category


I-A Domestic 16249 17550
16309 17428
16309 17428
I-C LT bulk supply 10 10
10 11
10 11
II-A
Public Lighting and Water
Supply 1597 1709
1603 1614
1603 1614
II-B-1
Govt. & Govt. Aided
Education Instns. Etc. 219 221
84 127
84* 127
II-B-2 Private College etc. 149 150
150 254
150 254
IIC Places of Pub. Worship 98 106
99 102
99 102
IIIA 1 Cottage and Tiny Industries 122 125
123 123
123 123
IIIA 2 Power Looms 822 873
824 730
824 730
IIIB L.T. Industries 4418 4529
4435 4015
4435 4015
V L.T. Commercial 4592 4914
4598 4514
4598 4514
VI Temporary supply 16 17
17 20
17 20
*Private Educational Institutions were earlier categorised along with Government Educational Institutions under
Recognised Educational Institutions. The Commission vide its Order No. 3 of 2010 recategorised Private
Educational Institutions separately.There may be some abnormality in booking sales under these categories during
FY 2010-11. The Commission has considered sales submitted by TANGEDCO in Form-19 submitted on March 17,
2012 for the purpose of approval of sales in FY 2010-11 and FY 2011-12 and projection of sales in FY 2012-13.
3.1.21 As regards sales for various metered consumer categories in FY 2012-13, the
Commission has worked out 5 year CAGR, 3 year CAGR and Y-O-Y growth rate which
is tabulated as under:



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Table 7: Growth rates for HT Categories on the basis of actual sales in previous years
(MU)
Consumer Category FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
5 Year
CAGR
3 Year
CAGR
Y on Y
Growth
Rate
HT I-
A
Industries 11423 13879 15434 14219 14468 16817* 10.94% 5.88% 19.59%
HT I-
B
Railway
Traction
485
HT
II-A
Govt.
Educational
Institutions**
731 815 872 871 954 903 9.68% 10.15% 10.89%
HT
II-B
Private
Educational
Institutions,
etc.
155
HT
II-C
Place of
Worship
2 2 2 3 4 3 10.67% 0.00%
-
26.83%
HT
III
Commercial 1070 1231 1408 1433 1600 1906 15.53% 15.33% 19.13%
HT
IV
Lift Irrigation 5 7 9 9 8 7 6.48%
-
11.81%
-
12.50%
HT V
Other HT
Supply/Supply
to Puducherry
and Other
States
897 603 576 685 413
-
15.32%
-
39.68%
* FY 11 Sales considered after including sales on account of Railway Traction
** FY 11 Sales considered after including sales on account of Private Educational Institutions, Cinema,
Studio etc.
Table 8: Growth rates for LT Categories on the basis of actual sales in previous years
(MU)
Consumer Category FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
5 Year
CAGR
3 Year
CAGR
Y on Y
Growth
Rate
LT I-
A
Domestic 11051 12033 12575 13603 15361 16309 10.22% 9.50% 6.17%
LT I-
C
LT bulk
supply
2 3 3 12 10 10 49.53% -8.71% -4.75%
LT
II-A
Public
Lighting and
Water Supply
1179 1295 973 1285 1494 1603 7.98% 11.69% 7.26%
LT
II-B-
1
Government
Educational
Institutions
283 314 335 595 509 84 -26.19% -37.29% -54.03%

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Consumer Category FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
5 Year
CAGR
3 Year
CAGR
Y on Y
Growth
Rate
LT
II-B-
2
Private
Educational
Instt. Etc.
150
LT
IIC
Places of
Pub. Worship
49 60 68 80 91 99 19.22% 11.24% 8.78%
LT
IIIA
1
Cottage and
Tiny
Industries
242 260 264 574 605 123 -15.56% -53.71% -79.67%
LT
IIIA
2
Power
Looms
578 643 672 743 805 824 9.29% 5.31% 2.32%
LT
IIIB
L.T.
Industries
3921 4454 4585 3750 3979 4435 3.13% 8.75% 11.47%
LT V
L.T.
Commercial
2897 3467 3720 3690 4137 4598 12.24% 11.38% 11.14%
LT
VI
Temporary
supply
11 11 11 39 35 17 11.50% -33.98% -50.73%

3.1.22 The Commission has adopted the following methodology for calculation of energy sales
in FY 2012-13:
Methodology adopted for HT Categories:
a. Category-HT I-A (Industries): Since there is negative growth in the approved energy
sales due to R&C measures, Power Cuts and wheeled sales in FY 2011-12 on account
of this category, the Commission has applied 5 Year CAGR, i.e., 10.94% (as shown
in Table-3) considering FY 2010-11 as the base year.
b. Category-HT I-B (Railway Traction): Since this category was a part of HT I-A
Category up to FY 2009-10, the Commission has adopted the same percentage, i.e.,
10.94% as calculated in the case of Category-HT I-A on the sales approved for FY
2011-12.
c. Category-HT II-A (Government Educational Institutions): The Commission observed
that there is negative growth in the approved sales of this category in FY 2011-12.
This is due to the change in categorisation of consumers from Recognised
Educational Institutions to two different consumer categories, i.e., Government and
Private Educational Institutions. Therfore, the Commission has not considered any
increase in the sales of this category.
d. Category-HT II-B (Private Educational Institutes etc.): The Commission observed
that there is substantial growth in this category in FY 2011-12. This is due to adding

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of all recognised Institutions in Private Educational Institutions which were earlier
grouped in HT-II A. Therefore the Commission has considered 5 year CAGR on the
basis of past data for projecting the sales for this category in FY 2012-13.
e. Category-HT II-C (Place of worship): The Commission observed that there has not
been significant growth in sales of this category from FY 2005-06 to FY 2011-12.
Therefore, the Commission has not considered any increase in this category.
f. Category-HT III (Commercial): The Commission has considered 5 year CAGR on the
basis of past data for projecting the sales for this category in FY 2012-13.
g. Category-HT IV (Lift Irrigation): The Commission observed there has not been
significant growth in sales of this category from FY 2005-06 to FY 2011-12.
Therefore, the Commission has not considered any increase in this category.
h. Category-HT V (Supply to Puducherry and other States): The Commission has not
considered the sales on account of this category, based on the rulings of the
Commission in its previous Tariff Order dated July 31, 2010.

Methodology adopted for LT Categories:
a. Category-LT I-A (Domestic): For this category, the Commission has calculated the
average of y-o-y increase in last 5 years in the number of consumers. The
Commission has further applied this average on FY 2010-11 to arrive at the number
of consumers in FY 2011-12. The Commission has further applied the same
percentage on number of consumers in FY 2011-12 to arrive at number of consumers
in FY 2012-13. Based upon the sales approved for this category in FY 2011-12 in this
Tariff Order, the Commission has calculated the specific consumption. The
Commission has calculated the energy sales on account of this category in FY 2012-
13 by multiplying the specific consumption in FY 2011-12 with the number of
consumers calculated for FY 2012-13. The energy sales for LT I-A (Domestic) as
calculated by the Commission is tabulated below:
Table 9: Energy Sales for LT I-A (Domestic) in FY 2012-13
(MU)
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Avg.
Inc.
2011-12 2012-13
No. of
Consumers
11974293 12948941 13726048 13788042 14401239 15061518 15773164 16518436
Consumption
(MU)
11052 12033 12575 13603 15361 16309 17428 18252

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Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Avg.
Inc.
2011-12 2012-13
% Increase
in
Consumers
4.49 8.14 6.00 0.45 4.45 4.58 4.72 4.72 4.72
% Increase
in
Consumption
14.23 8.88 4.50 8.17 12.92 6.17
Specific
Consumption
(kWh/
Annum)
923 929 916 987 1067 1083 1105 1105

b. Category-LT I-C (LT Bulk Supply): The Commission observed there has not been
significant growth in sales of this category from FY 2008-09 to FY 2011-12.
Therefore, the Commission has not considered any increase in this category.
c. Category-LT II-A (Public Lighting and Water Supply): The Commission has applied
y-o-y percentage increase, i.e., 0.68% in the sales approved for FY 2011-12 over sales
approved for FY 2010-11 considering FY 2011-12 as the base year.
d. Category-LT II-B-1 (Government & Government Aided Educational Institutions):
The Commission observed there has been negative growth in the approved sales of
this category due to re-categorisation. . Therefore, the Commission has not considered
any increase in this category.
e. Category-LT II-B-2 (Private College): The Commission observed there has been
sudden increase in the sales on account of this category due to re-categorisation.
Therefore, the Commission has not considered any increase in this category.
f. Category-LT IIIA-1 (Cottage and Tiny Industries): The Commission has adopted the
percentage increase equal to the percentage increase as considered by TANGEDCO
for projection of sales for this category in FY 2012-13 over sales projected in FY
2011-12. .
g. Category-LT IIIA-2 (Power Looms): The Commission observed that there has been
negative growth in the approved sales of this category due to R&C measures.
Therefore, the Commission has not considered any increase in this category.
h. Category-LT-III B (Industries): The Commission observed that there has been
negative growth in the approved sales of this category due to re-categorisation.
Therefore, the Commission has not considered any increase in this category.
i. Category-LT V (LT Commercial): The Commission has considered 5 year CAGR,
i.e., 12.24% as shown in Table-5 on the basis of past sales data for projecting the
sales for this category in FY 2012-13.

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i. Category-LT VI (Temporary Supply): The Commission observed there has not been
significant growth in sales of this category from FY 2010-11 to FY 2011-12.
Therefore, the Commission has not considered any increase in this category.
3.1.23 The energy sales calculated by the Commission for various metered categories in FY
2012-13 are tabulated below:
Table 10: Energy Sales calculated for various metered categories in FY 2012-13
(MU)
Particulars TANGEDCO Commission
HT Category
I-A Industries
21645 13545
I-B Railway Traction
549 726
II-A Govt. & Govt. Aided Educational Instns. Etc.
929 882
II-B Pvt Educational Inst. etc.
163 243
II-C Place of Worship
3 5
III Commercial
2498 1908
IV Lift Irrigation
8 6
V Supply to Puducherry and Other States
425
LT
Category
I-A Domestic 18603 18252
I-C LT bulk supply 11 11
II-A Public Lighting and Water Supply 1829 1625
II-B-1 Govt. & Govt. Aided Education Instns. Etc. 223 127
II-B-2 Private Educational Instt. Etc. 152 254
IIC Places of Pub. Worship 114 102
IIIA 1 Cottage and Tiny Industries 128 126
IIIA 2 Power Looms 925 730
IIIB L.T. Industries 4891 4015
V L.T. Commercial 5258 5066
VI Temporary supply 18 20

Methodology adopted for Unmetered Categories:
3.1.24 The Commission observed that there are two unmetered categories, i.e., Huts and
Agriculture . The Commission has adopted the following methodology for calculation of
sales on account of unmetered categories:
a. Category-LT I-B (Huts): In reply to data gaps raised by the Commission,
TANGEDCO submitted the revised details towards the category of Huts from FY

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2010-11 to FY 2012-13. The Commission has accepted the revised submission of
TANGEDCO towards the category of Huts in FY 2010-11. As regards the
consumption of Hut services in FY 2011-12 and FY 2012-13, the Commission
observed that TANGEDCO has furnished calculations towards energy projection on
account of Huts Category on the basis of certain assumptions. The Commission
observed that the assumptions made by TANGEDCO are not in conformity with
Government Order (G.O.).Ms. No.2 dated 03-06-2011 issued by GoTN. Therefore the
Commission has recalculated the consumption based on the details available in the
above said G.O. The load details and the duration of running hours per day for fan,
mixie and grinder furnished by TANGEDCO are 80, 800 and 200 Watts and 12, 0.5
and 2 hours respectively. However the label of the GoTN depicts 61, 550 and 300
watts for fan, mixie and grinder respectively. The Commission has further considered
the wattage as considered by the GoTN and the duration as provided by
TANGEDCO. The Commission has considered the lighting load of 11 Watts (CFL)
for new hut service and running hours of 6 Hours per day. Energy sales on account of
Huts Category as calculated by the Commission are tabulated below:
Table 11: Hut Consumption for FY 2011-12 and FY 2012-13
FY 2011-12
Description
No. of
Huts
Connected Load
(KW)
Energy
(MU)
Present consumption of energy by all Hut
services
1476351 113940 403
No. of consumers supplied with Fan, Mixie and
Grinder in 2011-12
201687
Fan 12303 27
Mixie 110928 10
Grinder 60506 22
Total Consumption for 2011-12 462

FY 2012-13
Description
No. of
Huts
Connected Load
(KW)
Energy
(MU)
Number of Huts at the beginning of the year 1476351 297677 521
Addition of new Hut services in 2012-13 27000 297 0.33
Total Hut services at the end of year 1503351
No. of consumers supplied with Fan, Mixie and
Grinder in 2011-12
201687

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Description
No. of
Huts
Connected Load
(KW)
Energy
(MU)
Number of Huts at the beginning of the year 1476351 297677 521
No. of consumers supplied with Fan, Mixie and
Grinder in 2012-13
325416
Fan 19850 43
Mixie 178979 16
Grinder 97625 36
Total Consumption for 2012-13 617

GOTN has programmed to distribute Fan, Mixie and Grinder during 2011-12 to 25
Lakh families out of 1.83 Crore beneficiary families. Accordingly, number of hut
beneficiaries has been calculated based on the total number of hut services during
2011-12. The balance hut services are split across 4 years period from FY 2012-13 to
FY 2015-16.

b. Category-LT IV (Agriculture Consumption): The Commission has recalculated the
energy sales on account of Agriculture Consumption. The Commission observed
discrepancy in the data regarding number of agriculture service connections
submitted by TANGEDCO in Form-19 annexed along with the Petition. In reply to
data gaps raised by the Commission, TANGEDCO revised the number of agriculture
service connections along with the connected load at the end of respective years.
Further, the Commission vide its letter dated September 8, 2011 directed
TANGEDCO to conduct a sample study for proper estimation of agricultural
consumption. The Commission had also directed to estimate T&D losses
scientifically and such study shall be reflected in their tariff petition so as to calculate
the power purchase correctly. In response to the data gap raised, TANGEDCO
submitted the methodology adopted for arriving at the agricultural consumption and
line loss as below:

The agricultural consumption is calculated every month based on the sample
meter reading furnished by the field in the absence of 100 % metering. The
sample meters to a value of 5 % are provided/ available in each area/circle in
which readings are taken every month by the field staff. As sample meter readings
are available in each area/circlewise on monthly basis, the areawise
geographical condition and seasonal condition are taken care for arriving at

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computed consumption. This calculated agricultural consumption in each
area/circles are combined /added to arrive at the total agricultural consumption
in the State. Since 5 % sample meters are available in each and every area/circle
and the readings are taken in all the sample meters every month by the field staff,
the computed consumption of the total agricultural consumption in the State
based on sample meter readings is a reasonable and scientific agricultural
consumption data. However Anna University has already been appointed for
suggesting a suitable scientific methodology for arriving at the agricultural
consumption in Tamil Nadu in the absence of 100 % metering.

The agricultural consumption thus computed for 2010-11, based on the actual
sample meter readings taken from the field is enclosed herewith. For the year
2011-12, the same is arrived with the actual sample meter readings received from
the field for the period up to December 2011 and projected for the balance period
of three months. Similarly, for the year 2012-13, the projected values are
enclosed considering the addition of new agricultural services proposed to be
effected during that period.

In another query raised by the Commission, the average consumption of agriculture
consumers was submitted by TANGEDCO. The Commission for the purpose of
calculation of sales on account of Agriculture Consumption has referred to the revised
data submitted by TANGEDCO in reply to data gaps. However, the Commission has
capped specific consumption for FY 2012-13 at 951 kWh/HP/Annum based on
actuals of FY 2011-12.The Commission has calculated the average capacity of
pumpset at the middle of the year by dividing the connected load at the middle of the
year by number of service connections on account of agriculture consumption at the
middle of the year. The Commission has further multiplied the average capacity of
pumpset, the revised average specific consumption on account of agriculture
consumers and number of service connections at the middle of the year. The sales on
account of agriculture consumption approved in the Order the Commission from FY
2010-11 to FY 2012-13 is tabulated below:




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Table 12: Sales approved by the Commission for Agriculture Consumption
(MU)
S. No Details FY 2010-11 FY 2011-12 FY 2012-13
1 No. of Service Connection 1999237 2029237 2069237
2
No. of Service Connection at
the Middle of the Year
1962091 2014237 2049237
3
Connected Load in HP at the
end of the year
10872018 11036118 11254918
4
Connected Load in HP at the
middle of the year
10734318 10954068 11145518
5
Average capacity of the
pumpset in HP at the middle
of the year (4/2)
5.47 5.44 5.44
6
Average Consumption in
kWh/HP/Annum arrived
from sample study
896.08 951.10 951.10
7
Consumption in MU
(2x5x6)
9618.8 10418.4 10600.5

3.1.25 On the basis of above discussion the Category-wise energy sales as calculated by the
Commission is tabulated below:
Table 13: Category-wise energy sales approved by the Commission
(MU)
Particulars
TANGEDCO Commission
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
HT Category
I-A Industries
16817 19155 21645 12210 10657 13545
I-B Railway Traction
485 494 549 485 654 726
II-A
Govt. & Govt. Aided
Educational Instns. Etc. 903 911 929 903 882 882
II-B Pvt Educational Inst. etc.
155 157 163 148 222 243
II-C Place of Worship
3 3 3 3 5 5
III Commercial
1906 2211 2498 1763 1651 1908
IV Lift Irrigation
7 8 8 7 6 6
V
Supply to Puducherry
and Other States 413 413 425
Total HT 20689 23352 26220 15520 14078 17315
LT
Category

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Particulars
TANGEDCO Commission
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
I-A Domestic 16249 17550 18603 16309 17428 18252
I-B Huts 350 385 424 355 462 617
I-C LT bulk supply 10 10 11 10 11 11
II-A
Public Lighting and
Water Supply 1597 1709 1829 1603 1614 1625
II-
B-1
Govt. & Govt. Aided
Education Instns. Etc. 219 221 223 84 127 127
II-
B-2
Private Educational Instt.
Etc. 149 150 152 150 254 254
IIC Places of Pub. Worship 98 106 114 99 102 102
IIIA
1
Cottage and Tiny
Industries 122 125 128 123 123 126
IIIA
2 Power Looms 822 873 925 824 730 730
IIIB L.T. Industries 4418 4529 4891 4435 4015 4015
IV L.T. Agriculture 10417 10903 11546 9619 10418 10601
V L.T. Commercial 4592 4914 5258 4598 4514 5066
VI Temporary supply 16 17 18 17 20 20
Total LT
39059 41492 44122 38226 39819 41546
Grand Total 59750 64844 70342 53746 53897 58861

3.1.26 With lifting of R&C, if sales increases for industrial consumers, the licensees revenue as
well as Power Purchase Cost will increase without creating much of gap especially with
the Power Purchase Cost adjustment which is already built in this Order.
T&D Loss:
3.1.27 The Commission in its previous Tariff Order approved y-o-y reduction of 0.4% in T&D
loss from FY 2008-09 onwards. The Commission fixed the T&D loss of 18% in FY
2009-10.
Table 14: T&D Loss approved by the Commission
Particulars 2009-10 2010-11 2011-12 2012-13
Loss level in % 18 17.6 17.2 16.8


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3.1.28 The Commission further ruled that in case the licensee achieves a loss at a level less than
the target, he may retain 50% of the gain out of the loss reduction and the balance 50%
will be passed to the consumers as per Regulation 3 (ix) of MYT Regulations.
3.1.29 TANGEDCO submitted that the energy balance for the current year and ensuing financial
year has been formulated after considering all the factors relating to demand and energy
requirement. TANGEDCO submitted the T&D loss which has been calculated on the
basis of energy input into the system and total output from the system for the year 2009-
10 and 2010-11 and as per balance sheet, AT&C loss has been adopted for the year 2011-
12 and 2012-13.
3.1.30 TANGEDCO further submitted that as on 30.06.2011 only 45.35% of the total
Distribution Transformers (DTs) havebeen metered.
3.1.31 TANGEDCO also submitted that in order to arrive at proper estimate of AT&C loss and
T&D loss as a pilot study with the above arrangement in Gopi, Bhavani, Sathya
mangalam (UA) under R-APDRP scheme, modems in the DT meters have been fixed to
enable the Automatic Meter Reading (AMR) facility. The DT meters would be connected
to the data center through necessary hardware and software. On completion of pilot
project, and Data capturing, the Energy Accounting/ Auditing could be completed in the
pilot area. Based on that sample data, AT&C loss can be evaluated for the pilot area.
3.1.32 TANGEDCO submitted that it has approached Anna University for scientific
measurement of T&D loss and measurement of unmetered Agricultural consumption.
This exercise is under progress.
3.1.33 TANGEDCO has listed some other initiatives taken to reduce losses to the maximum
extent possible which are as under:
Reduction of HT: LT ratio by erecting more High Tension lines and erecting new
DT.
Establishment of new substations.
Strengthening of HT line conductors
Installation of HT shunt capacitors at substation end
Installation of LT fixed capacitors at LT side of DT
Erection of link lines & Re-routing of feeders

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3.1.34 The T&D loss for FY 2009-10 and AT&C Loss for FY 2010-11 and FY 2011-12 as
submitted by TANGEDCO in its Petition are tabulated as under:
Table 15: T&D Loss as submitted by TANGEDCO from FY 2010-11 to FY 2012-13
Particulars 2010-11 2011-12 2012-13
Total sales (MU) 59750 64843 70342
Energy Loss in the system
(MU)
12762 15349 16222
AT&C loss % 17.60% (T&D) 19.14% 18.74%

Commissions View:
3.1.35 The Commission observed that TANGEDCO has not submitted T&D loss for FY 2011-
12 and FY 2012-13 in its Petition but the same was submitted later. Since the actual
energy available during FY 2010-11 and first ten months of FY 2011-12 has been
submitted by TANGEDCO, the Commission has re-estimated the T&D loss on the basis
of energy sales from FY 2010-11 to FY 2011-12 and the energy available during FY
2010-11 and FY 2011-12 approved by the Commission in this Order.
3.1.36 As regards FY 2012-13, the Commission has maintained the T&D loss, i.e., 16.80%
approved for FY 2012-13 in the previous Tariff Order. The Commission has grossed up
the total sales approved for FY 2012-13 by the T&D loss approved for FY 2012-13 in
order to arrive at energy requirement during FY 2012-13.
3.1.37 Energy Consumption on account of Kadamparai Pump Mode: The Commission observed
that energy is required for the purpose of Pumping in Kadamparai. The Commission is of
the view that the energy requirement on account of Pumping in Kadamparai is also met
through the energy available during respective year. The Commission obtained the details
of actual net energy generation and the energy consumed for the purpose of pumping in
Kadamparai in FY 2010-11 and FY 2011-12 which are tabulated below:
Table 16: Data submitted by TANGEDCO for Kadamparai
(MU)
Particulars Reference FY 2010-11 FY 2011-12
Kadamparai-Gen
A
568 489
Kadamparai-Pump Mode
B
612 508
Net Energy Required C=A-B (43) (19)


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3.1.38 Based upon the data submitted by TANGEDCO, the Commission has considered the net
difference between the net generation of Kadamparai and energy consumed for the
purpose of pumping in Kadamparai as the differential energy required for Kadamparai
Pump Mode during respective years. For FY 2012-13, the Commission has considered
the average of differential energy calculated for FY 2010-11 and FY 2011-12.
3.1.39 The T&D loss computed by the Commission from FY 2010-11 to FY 2012-13 is
tabulated below:
Table 17: T&D Loss computed by the Commission
Particulars Units
TANGEDCO Commission
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
Sales
MU 59750 64844 70342 53746 53897 58861
Differential
Energy required
for KDM Pump
Mode*
MU 0 0 0 43 19 31
Total Energy
consumption
MU 59750 64844 70342 53789 53916 58892
T&D Loss**
% 17.60% 19.14% 18.74% 21.78% 22.13% 16.80%
T&D Loss
MU 12762 15349 16222 14981 15324 11892
Total Energy
Requirement
MU 72512 80193 86564 68770 69240 70784

*Difference between net energy generated by Kadamparai and energy required for Pumping
**TANGEDCO submitted T&D Loss for FY 2010-11 and then AT&C for FY 2011-12 and FY 2012-13
3.1.40 As shown above the Commission has arrived at the energy requirement of 70784 MU in
FY 2012-13. The Commission has considered this quantum for Merit Order Ranking in
Order to decide the sources from which power is required to be purchased by
TANGEDCO in FY 2012-13. However due to the delays in schedule of commissioning
of the upcoming power stations MOD may get distorted and some more stations may get
despatched.
3.1.41 The Commission observed that the actual/revised T&D loss for FY 2010-11 and FY
2011-12 is 21.78% and 22.13% as compared to 17.60% and 17.20% approved by the
Commission in its previous Tariff Order. The Commission has discussed the additional
cost incurred by TANGEDCO on this account in Power Purchase chapter, later in this
Order.


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3.1.42 As regards the pilot study being conducted by TANGEDCO, the Commission is of the
view that based upon the success of the same, it may be extended to the remaining areas.
3.1.43 The Commission directs TANGEDCO to complete the exercise being done by
TANGEDCO for accurate measurement of T&D Loss and unmetered agricultural
consumption before October 31, 2012 and submit the findings before the Commission
before December 1, 2012.

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4 Energy Availability
4.1.1 Tamil Nadu Generation and Distribution Company Limited (TANGEDCO), in its
Petition submitted the expenses towards its Generation and Distribution activities from
FY 2010-11 to FY 2012-13 based on the actual energy available and various expenses
incurred during FY 2010-11 and FY 2011-12 (First Half (H1)). For FY 2011-12 (Second
Half (H2)) and FY 2012-13, TANGEDCO projected the availability and expenses on
account of various heads on the basis of certain assumptions and past trends.
4.1.2 The Commission in its Order dated July 31, 2010 (Order No. 3 of 2010) determined the
performance norms and expenses for various Generating Stations of TANGEDCO.
Accordingly the Commission in this Section has analysed the performance and expenses
on various heads for the Generation Business of TANGEDCO from FY 2010-11 to FY
2012-13 in accordance with TNERC (Terms and Conditions for determination of Tariff)
Regulations, 2005.
4.1.3 The energy availability of various own Generating Stations have been discussed in this
section in the Order given below:
1. Thermal Power Stations
2. Gas Turbine Power Stations
3. Hydel Generation
4. Wind Generation
5. Other Sources

Thermal Power Stations:
4.1.4 Energy Availability mainly depends upon net generation available from the Power Plants.
The Net Generation is determined on the basis of Plant Load Factor (PLF) and Auxiliary
Consumption which are discussed below:
Plant Load Factor
4.1.5 Gross Generation of Generating Station depends upon its PLF. The Commission in its
Previous Tariff Order calculated the Gross Generation for various Generating Stations on
the basis of PLF which is tabulated as under:


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Table 18: Plant Load Factor (PLF) approved in Previous Tariff Order
S. No Particulars MW FY 2010-11 FY 2011-12 FY 2012-13
1 Ennore TPS 450 50.81% 50.81% 50.81%
2 Tuticorin TPS 1050 90.02% 90.02% 90.02%
3 Mettur TPS 840 91.75% 91.75% 91.75%
4 North Chennai TPS 630 86.79% 86.79% 86.79%
5 NCTPS Stage-II 80% 80%
6 MTPS Stage-III 80% 80%

4.1.6 TANGEDCO in its Petition submitted the actual PLF during FY 2010-11. For FY 2011-
12 and FY 2012-13, TANGEDCO projected the PLF for its various Generating Stations.
The PLF from FY 2010-11 to FY 2012-13 as submitted by TANGEDCO in its Petition is
tabulated as under:
Table 19: Plant Load Factor (PLF) submitted in Petition
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Ennore TPS 35.42% 29.04% 20.28%
2 Tuticorin TPS 77.33% 79.79% 82.25%
3 Mettur TPS 82.42% 92.70% 89.01%
4 North Chennai TPS 81.74% 91.70% 86.17%

4.1.7 TANGEDO in its Petition has also projected net generation from new station, i.e., MTPS
(Stage-III) during FY 2011-12. However TANGEDCO has not submitted the gross
generation for the same.
4.1.8 Similarly for FY 2012-13 TANGEDCO has projected generation from new stations
(NCTPS (Stage-II Unit-1 and 2) and MTPS (Stage-III)) but separate PLF for these Units
have not been submitted in the Petition and the generation from these Units have been
clubbed with the existing Units in its Forms submitted along with the Petition.

Commissions View:
4.1.9 As regards Target PLF to be achieved by various Thermal Power Stations, Regulation-37
of TNERC Tariff Regulations, 2005 states as under:
37. Norms of Operation
The norms of operation for Thermal Generating Stations shall be as under:

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(i) Target Availability for recovery of full capacity (fixed) charges:
a) All Thermal Generating Stations in Tamil Nadu except Ennore Thermal
Power Generating Station-80%
b) Ennore Thermal Power Generating Station (Till Renovation and
Modernisation works in all units are completed)-50%.
c) In respect of Generating Stations of Independent Power Producers- As per
PPA
d) New Thermal Stations-80%
4.1.10 The Commission observed that the PLF projected for all Thermal Power Stations (TPS)
except Ennore TPS is more than 80%. In reply to the data gaps raised by the Commission
regarding lower PLF for Ennore TPS during FY 2010-11, TANGEDCO submitted that
all the Units at Ennore TPS have already served their lifetime and on completion of major
R&M Works, the above Units of Ennore TPS have served further 5-10 years.
TANGEDCO submitted that the Units are proposed to be de-commissioned by 2015-17
in phased manner. TANGEDCO further submitted the reasons for non-availability of
various Units of Ennore TPS which are as under:
1. In Unit-I and Unit-II, the load is restricted due to non-availability of UAT, Turbine
vibration, wet coal, stones in coal and to minimize oil usage.
2. In Unit-III, the load is restricted due to Chloride Ingress and severe O
2
crash problem.
3. In Unit-IV, the load is restricted due to O
2
crash, Low vacuum, Turbine vibration due
to aged Rotors, etc.
4. In Unit-V, the load is restricted due to partial shaving of LP Rotor blades, RH
pressure limit, low condenser vacuum, wet coal, stones in coal.
4.1.11 In view of the above reasons submitted by TANGEDCO for lower PLF of Ennore TPS,
the Commission has decided to accept the actual PLF in FY 2010-11 for Ennore TPS as a
special case. As regards other Thermal Power Stations, the Commission observed that the
actual PLF is around 80% in FY 2010-11 and there is considerable difference as
compared to the target set by the Commission in last Tariff Order. Since FY 2010-11 is
already over and TANGEDCO has submitted the actual PLF for its various generating
stations, the Commission has decided to adopt the actual PLF for all Thermal Generating
Stations in FY 2010-11. However while allowing capacity charges during FY 2010-11,
the Commission has followed Regulation-37 of TNERC Tariff Regulations, 2005 which
states as under:
37. Norms of Operation

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The norms of operation for the Thermal Generating Stations shall be as under:
i. Target availability for recovery of full capacity (fixed) charges
a. All Thermal Generating stations in Tamil Nadu except Ennore Thermal
Power Generating Station - 80%
b. Ennore Thermal Power Generating Station (Till Renovation and
Modernization works in all units are completed) 50%
c. In respect of Generating Stations of Independent Power Producers - As
per PPA
d. New Thermal Stations 80%
4.1.12 For FY 2011-12 and FY 2012-13, TANGEDCO in reply to data gaps, submitted the
detailed annual overhauling and servicing schedule for various Thermal Power Stations
in support of its projections towards projection of PLF and gross generation during FY
2011-12 and FY 2012-13.
4.1.13 As regards energy availability from Thermal Power Stations in FY 2011-12, the
Commission in the data gaps asked TANGEDCO to submit the actual generation up to
December 2011 and projections for the next three months, i.e., from January to March
2012. TANGEDCO in its reply submitted actual Gross Generation up to December 2011
and revised projections from January to March 2012 which is tabulated below:

Table 20: Revised Projections submitted by TANGEDCO for FY 2011-12
S. No Particulars
Actual Up to
Dec 2011 (MU)
Projections
January-March
2012 (MU)
FY 2011-12
(MU)
1
Ennore TPS 728 289 1017
2
Tuticorin TPS 5774 2033 7807
3
Mettur TPS 5119 1680 6799
4
North Chennai TPS 3706 1125 4831

4.1.14 Based on the above data submitted by TANGEDCO, the Commission has calculated the
PLF for various Generating Stations which is tabulated below:
Table 21: PLF for Generating Stations
S. No Particulars FY 2011-12
1 Ennore TPS 25.81%
2 Tuticorin TPS 84.87%
3 Mettur TPS 92.40%
4 North Chennai TPS 87.54%

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4.1.15 The Commission observed that the PLF for all Generating Stations except Ennore TPS
are within approved limits in accordance with Regulation-37 of TNERC Tariff
Regulations, 2005. Since the above figures of PLF are based on 9 months actuals and 3
months projections, the Commission has decided to consider the above PLF during FY
2011-12. As regards energy availability from MTPS (Stage-III) during FY 2011-12,
TANGEDCO has reported Generation of 259 MU for MTPS (Stage-III) for FY 2011-12.
The Unit is not yet synchronized. Therefore, the Commission has not considered any
generation from MTPS (Stage-III) for FY 2011-12.
4.1.16 For FY 2012-13, TANGEDCO in its reply submitted the Unit-wise detailed report on
projection of energy availability for Ennore TPS along with the constraints for reduced
PLF.
4.1.17 The Commission has noted the submission of TANGEDCO regarding the constraints in
achieving higher PLF for Ennore TPS and the detailed basis for projection of energy
available from Ennore TPS during FY 2012-13. Since this Power Station is to be
decommissioned shortly, no major Repair and Maintenance work or capital work is
expected to be undertaken. Therefore, the Commission has considered the PLF of 20.28%
for Ennore TPS in FY 2012-13 as submitted by TANGEDCO.
4.1.18 As regards PLF of Tuticorin and Mettur TPS during FY 2012-13, the Commission has
worked out the last five years average PLF, i.e., from FY 2007-08 to FY 2011-12.
Table 22: PLF on the basis of last 5 years average
S. No Particulars FY 08 FY 09 FY 10 FY 11 FY 12
5 Years
Average
1
Tuticorin
(TTPS)
86.70% 85.35% 77.91% 77.33% 84.87% 82.43%
2
Mettur (MTPS)
90.94% 87.78% 86.85% 82.42% 92.40% 88.08%

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4.1.19 As regards PLF for TTPS in FY 2012-13, the Commission observed that there was an
irregular pattern for past five years. Therefore the Commission has considered average
PLF calculated on the basis of last 5 years data.
4.1.20 For MTPS, the Commission observed that the PLF projected by TANGEDCO is higher
as compared to last 5 years average. Hence for MTPS the Commission has considered the
PLF as projected by TANGEDCO in the Petition.

4.1.21 For North Chennai TPS, TANGEDCO has reported that the poor PLF for FY 2010-11 is
due to the forced shutdown of Unit-1 and Unit-2 for a considerable period on the account
of certain specific problems.
4.1.22 Therefore for NCTPS the Commission has taken average PLF from FY 2006-07 to FY
2011-12 excluding FY 2010-11. The average PLF on the basis of past trends as computed
by the Commission is tabulated below:
Table 23: PLF on the basis of last 5 years average
S. No Particulars FY 07 FY 08 FY 09 FY 10 FY 12
5 Years
Average
1
North Chennai
(NCTPS)
88.87% 84.38% 86.52% 87.43% 87.54% 86.95%

4.1.23 Therefore, the Commission has decided to adopt the following PLF during FY 2012-13
for various TPS for estimating the energy availability:
Table 24: PLF adopted by the Commission for FY 2012-13
S. No Particulars Last Order Petition
Last 5 years
Average
Commission
1 ETPS 50.81% 20.28%
40.00%
20.28%
2 TTPS 90.02% 82.25%
82.43%
82.43%
3 MTPS 91.75% 89.01%
88.08%
89.01%
4 NCTPS 86.79% 86.17%
86.95%
86.95%


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4.1.24 For new upcoming units, i.e., NCTPS (Stage-II, Unit-1 and 2) and MTPS (Stage-III), the
Commission has considered PLF as 80% during FY 2012-13 in accordance with Clause-
37 of TNERC Tariff Regulations, 2005. The comparison of PLF as projected by
TANGEDCO in the Petition and that approved by the Commission in this Order is
tabulated below:
Table 25: PLF from FY 2010-11 to FY 2012-13
S.
No
Particulars
FY 2010-11 FY 2011-12
Last
Order
Petition Commission
Last
Order
Petition
Rev.
Sub.
Commission
1 Ennore TPS 50.81%
35.42% 35.42%
50.81%
29.04%
25.81% 25.81%
2
Tuticorin
TPS 90.02%
77.33% 77.33%
90.02%
79.79%
84.87% 84.87%
3 Mettur TPS 91.75%
82.42% 82.42%
91.75%
92.70%
92.40% 92.40%
4
North
Chennai
TPS
86.79% 81.74% 81.74% 86.79% 91.70% 87.54% 87.54%

S. No Particulars
FY 2012-13
Last
Order
Petition Commission
1 Ennore TPS 50.81% 20.28% 20.28%
2 Tuticorin TPS 90.02% 82.25% 82.43%
3 Mettur TPS 91.75% 89.01% 89.01%
4
North Chennai
TPS
86.79% 86.17% 86.95%

Auxiliary Consumption
4.1.25 The Commission in Previous Tariff Order approved the following auxiliary consumption
for various stations:
Table 26: Auxiliary Consumption approved in Previous Tariff Order
S. No Particulars
Percentage
approved
1 ETPS 8.50%*
2 TTPS 8.50%
3 MTPS 9%
4 NCTPS 8.50%
5
NCTPS Stage-
II 8.50%
6 MTPS Stage- 9%

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S. No Particulars
Percentage
approved
III
* While calculating energy availability in Previous Tariff Order, the Commission considered 14.48% as auxiliary
consumption based upon average of five years.
4.1.26 TANGEDCO in its Petition did not submit the auxiliary consumption for various
Generating Stations. However in the Format-7 annexed along with the Petition,
TANGEDCO submitted the auxiliary consumption in MU for various generating stations.
The auxiliary consumption as submitted in the formats for various Generating Stations is
tabulated below:
Table 27: Auxiliary Consumption submitted in the Petition
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Ennore TPS 220 155 131
2 Tuticorin TPS 591 638 669
3 Mettur TPS 516 557 579
4 North Chennai TPS 401 414 406

TANGEDCO has clubbed the new generating units during FY 2012-13 (NCTPS (Stage-II Unit-1
and 2) and MTPS (Stage-III)) in the existing units of NCTPS and MTPS in its Form-7 of NCTPS
and MTPS respectively. Therefore auxiliary consumption percentage for new units during FY
2012-13 is not available separately.
Commissions View:
The Commission observed that in accordance with Regulation-37 (v) of TNERC Tariff
Regulations, 2005 the auxiliary consumption is required to be approved as percentage of Gross
Generation. Regulation-37 (v) of TNERC Tariff Regulations, 2005 states as under:
37. Norms of Operation
The norms of operation for Thermal Generating Stations shall be as under:

(v) Auxiliary Energy Consumption
(a) Coal based generating station
With Cooling tower Without Cooling tower
(i) 200 MW Series 9.00% 8.50%
(ii) 500 MW Series
Steam driven Boiler Feed Pumps 7.50% 7.00%

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Electrically driven BFPs 9.00% 8.50%


4.1.27 The Commission has calculated the auxiliary consumption percentage from the gross
generation (MU) and auxiliary consumption (MU) submitted by TANGEDCO in the
formats annexed along with the Petition. The auxiliary consumption percentage as
computed by the Commission based on the PLF% and Auxiliary Consumption (MU)
given in the formats annexed along with the Petition is tabulated below:

Table 28: Auxiliary Consumption percentage on the basis of formats submitted by TANGEDCO
S. No Particulars
FY 2010-11 FY 2011-12
Gross
Gen.
Aux.
Con.
Aux.
Con.
Gross
Gen.
Aux.
Con.
Aux.
Con.
MU MU % MU MU %
1 Ennore TPS 1396 220 15.78% 1033 155 15.00%
2 Tuticorin TPS 7113 591 8.31% 7656 638 8.33%
3 Mettur TPS 6065 516 8.51% 6791 557 8.20%
4 North Chennai TPS 4511 401 8.89% 5035 414 8.22%

S. No Particulars
FY 2012-13
Gross Gen. Aux. Con. Aux. Con.
MU MU %
1 Ennore TPS 799 131 16.39%
2 Tuticorin TPS 7565 669 8.84%
3 Mettur TPS 6550 579 8.84%
4 North Chennai TPS 4756 406 8.54%

4.1.28 As regards Auxiliary Consumption in FY 2010-11, the Commission believes that
TANGEDCO has submitted actual auxiliary consumption for various power stations as
FY 2010-11 is already over. Therefore the Commission has accepted the actual auxiliary
consumption for all Thermal Power Stations for the purpose of energy availability.
4.1.29 As regards FY 2011-12, the Commission in the data gaps asked TANGEDCO to submit
the actual generation up to December 2011 and projections for the next three months, i.e.,
from January to March 2012. TANGEDCO in its reply dated January 25, 2012 submitted

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actual auxiliary consumption% along with the Gross generation up to December 2011
and projections from January to March 2012.
4.1.30 Subsequently, TANGEDCO vide its letter dated March 4, 2012 resubmitted the net
generation for FY 2011-12 for all of its generating stations based upon 10 months actual,
i.e., from April 2011 to January 2012 and 2 months projections, i.e., February 2012 to
March 2012. The Commission observed that the net generation for various Thermal
generating stations resubmitted by TANGEDCO on March 4, 2012, i.e., 18724 MU is
different as compared to the data earlier submitted on January 25, 2012, i.e., 18685 MU.
4.1.31 Since there is difference between the net generation for various Thermal Power Stations
submitted by TANGEDCO, the Commission has considered the latest submission of
TANGEDCO for arriving at net energy availability during FY 2011-12. The Commission
observed that TANGEDCO in its latest submission did not submit gross generation. The
Commission has calculated the auxiliary consumption on the basis of the PLF approved
for various Thermal Power Stations for FY 2011-12 in this Order and the net generation
submitted by TANGEDCO in its latest submission dated March 4, 2012. The auxiliary
consumption as calculated for FY 2011-12 is tabulated below:

Table 29: Auxiliary consumption percentage as computed for FY 2011-12
Particulars
Gross
Generation
(MU)
Net
Generation
(MU)
Auxiliary
Consumption
(MU)
Auxiliary
Consumption %
Ennore (ETPS)
1017 851 166 16.32%
Tuticorin (TTPS)
7807 7018 789 10.11%
Mettur (MTPS)
6799 6234 565 8.31%
North Chennai
(NCTPS)
4831 4621 210 4.35%
Total
20454 18724 1730
* On the basis of revised gross generation submitted by TANGEDCO vide letter dated January 25, 2012 and net
generation submitted submitted by TANGEDCO vide letter dated March 4, 2012 However the auxiliary
consumption of North Chennai TPS does not seem to be realistic and TANGEDCO is required to check-up the
details.
4.1.32 As regards FY 2012-13, the Commission has considered the auxiliary consumption for all
Thermal Power Stations (including new stations) except Ennore TPS in accordance with
norms mentioned in Regulation-37 (v) of TNERC Tariff Regulations. For Ennore TPS,
the Commission observed that TANGEDCO submitted that all the Units at Ennore TPS
have already served their lifetime and on completion of major R&M Works, the Units of

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Ennore TPS have served further 5-10 years. TANGEDCO submitted that the Units are
proposed to be de-commissioned by 2015-17 in phased manner. Hence as a special case,
the Commission is approving Auxiliary Consumption of 15% during FY 2012-13. . The
auxiliary consumption for various Thermal Power Stations as considered by the
Commission for FY 2012-13 is tabulated below:
Table 30: Auxiliary Consumption for various TPS in FY 2012-13
S. No Particulars Last Order Petition Commission
1 ETPS 8.50%* 16.39% 15.00%
2 TTPS 8.50% 8.84% 8.50%
3 MTPS 9.00% 8.84% 9.00%
4 NCTPS 8.50% 8.54% 8.50%
5 NCTPS Stage-II** 8.50% 8.54% 8.50%
6 MTPS Stage-III** 9.00% 8.84% 9.00%
* While calculating energy availability in Previous Tariff Order, the Commission considered 14.48% as auxiliary
consumption based upon average of five years.
* *Norm for 600 MW is yet to be fixed. The above figures have been considered provisionally.

Net Generation
4.1.33 On the basis of above discussion, the net generation as submitted by TANGEDCO in its
Petition and that computed by the Commission for Coal based Thermal Power Stations in
this Tariff Order from FY 2010-11 to FY 2012-13 is tabulated below:
Table 31: Net Generation for FY 2010-11 approved by the Commission
(MU)
S. No
Particulars
FY 2010-11
Last Year
Order
Petition
Revised
Submission dated
4/03/2012
Commission
A Existing TPS
1 Ennore TPS 1713 1176 1176 1176
2 Tuticorin TPS 7576 6523 6522 6522
3 Mettur TPS 6143 5549 5549 5549
4 North Chennai TPS 4383 4110 4110 4110
5 Total 19815 17357 17357 17357
B New Cap. Addition
1
NCTPS (Stage-II) (Unit-
I) 0 0 0 0
2
NCTPS (Stage-II) (Unit-
2) 0 0 0 0

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S. No
Particulars
FY 2010-11
Last Year
Order
Petition
Revised
Submission dated
4/03/2012
Commission
3 MTPS Stage-III 0 0 0 0
4 Total 0 0 0 0
C Total TPS (A-5 + B-4) 19815 17357 17357 17357

Table 32: Net Generation for FY 2011-12 approved by the Commission
(MU)
S. No Particulars
FY 2011-12
Last Year
Order
Petition
Revised Submission
dated 04.03.2012
Commission
A Existing TPS
1 Ennore TPS 1713 851 851 851
2 Tuticorin TPS 7576 7018 7018 7018
3 Mettur TPS 6143 6235 6234 6234
4 North Chennai TPS 4383 4621 4621 4621
5 Total 19815 18724 18724 18724
B New Cap. Addition
1
NCTPS (Stage-II) (Unit-
I) 2561 0 0 0
2
NCTPS (Stage-II) (Unit-
2) 1276 0 0 0
3 MTPS Stage-III 2547 259 259
4 Total 6384 259 259 0
C Total TPS (A-5 + B-4) 26199 18983 18983 18724
* TANGEDCO has reported Generation of 259 MU for MTPS (Stage-III) for FY 2011-12. The Unit has not been
synchronized. Therefore, the Commission has not considered the generation from MTPS (Stage-III).
Table 33: Net Generation for FY 2012-13 approved by the Commission
(MU)
S. No Particulars
FY 2012-13
Last Year Order Petition Commission
A Existing TPS
1 Ennore TPS 1713 1361 680
2 Tuticorin TPS 7576 6896 6938
3 Mettur TPS 6143 5971 5960
4 North Chennai TPS 4383 4184 4391
5 Total 19815 18412 17968
B New Cap. Addition

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S. No Particulars
FY 2012-13
Last Year Order Petition Commission
1 NCTPS (Stage-II) (Unit-I) 3848
2130
1760
2
NCTPS (Stage-II) (Unit-
2) 3848
3030
3 MTPS Stage-III 3827 3528 3428
4 Total 11523 5658 8218
C Total TPS (A-5 + B-4) 31338 24070 26186
* The Commission has considered normative Auxiliary consumption due to which net generation is low.
4.1.34 In the letter dated February 28, 2012, TANGEDCO has reported that the Unit-I of
NCTPS (Stage-II) will be commissioned during October 2012, Unit-2 of NCTPS (Stage-
II) during June 2012. In respect of MTPS (Stage-III), the Unit will be synchronized
during March 2012 with the generation of 300 MW and the Unit will reach its full
generation of 600 MW during June 2012. Therefore, the generation of above new
projects has been calculated accordingly. The generation on account of NCTPS (Stage-II)
and MTPS (Stage-III) is tabulated below:
Table 34: Generation on account of NCTPS (Stage-III) and MTPS (Stage-III)
(MU)
Particulars
Installed
Capacity
(MW)
COD Next FY Days PLF
Gross
Gen
Aux.
Cons.
Net
Gen.
NCTPS (Stage-
II) (Unit-I)
600 15-Oct-12 03/31/2013 167 80% 1924 8.50% 1760
NCTPS (Stage-
II) (Unit-2)
600 15-Jun-12 03/31/2013 289 80% 3329 8.50% 3030
MTPS Stage-III
300 31-Mar-12 03/31/2013 365 80% 2102 9.00% 1913
MTPS Stage-III
300 15-Jun-12 03/31/2013 289 80% 1665 9.00% 1515

Gas Turbine Power Stations:
4.1.35 Energy Availability mainly depends upon net generation available from the Power Plants.
The Net Generation is determined on the basis of Plant Load Factor (PLF) and Auxiliary
Consumption which are discussed below:






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Plant Load Factor
4.1.36 Gross Generation of Generating Station depends upon its PLF. The Commission in its
Previous Tariff Order determined the Gross Generation for various Generating Stations
on the basis of PLF which is tabulated as under:

Table 35: Plant Load Factor (PLF) approved in Previous Tariff Order
S. No Particulars MW FY 2010-11 FY 2011-12 FY 2012-13
1
Tirumakottai GTPS
(Kovilkalappal)
107.88 68.75% 68.75% 68.75%
2 Kuttalam GTPS 101 77.08% 77.08% 77.08%
3 Basin Bridge GTPS 120 5.75% 5.75% 5.75%
4 Valuthur Unit-I 95 71.62% 71.62% 71.62%
5 Valuthur Unit-II 92 78.37% 78.37% 78.37%

4.1.37 TANGEDCO in its Petition submitted the actual PLF during FY 2010-11. For FY 2011-
12 and FY 2012-13, TANGEDCO projected the PLF for its various Generating Stations.
The PLF from FY 2010-11 to FY 2012-13 as submitted by TANGEDCO in its Petition is
tabulated as under:
Table 36: Plant Load Factor (PLF) submitted in Petition
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Tirumakottai GTPS
(Kovilkalappal)
68.74% 69.25% 65.71%
2 Kuttalam GTPS 19.29% 46.80% 71.20%
3 Basin Bridge GTPS 4.93% 8.63% 11.60%
4 Valuthur Unit-I 67.54% 77.16% 78.50%
5 Valuthur Unit-II 0.00% 57.20% 78.30%

4.1.38 TANGEDCO submitted the following reasons for lower PLF of various GTPS in its
Petition:
a. Kuttalam GTPS: The Unit was shut down from July 18, 2010 to May 26, 2011 due to
release of Generator Stator for replacement at Valuthur GTPS. Tirumakottai GTPS: The
gas availability was about 70% of the agreed quantity up to May 2011 due to which the
plant was under part load.
b. Valuthur GTPS-II: Valuthur GTPS-II was re-commissioned on May 7, 2011 after long
breakdown from January 9, 2010 due to heavy damages in Gas Turbine rotor. Even after

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re-commissioning, full load could not be reached due to vibration problems. The
vibration problems were sorted by OEM. The unit was operated in full capacity on
August 18, 2011.
Commissions View:
4.1.39 In Previous Tariff Order dated July 31, 2010, the Commission set target of around 70%
for all GTPS except BBGTPS. The Commission observed that there is significant
difference between the actual PLF achieved by various GTPS of TANGEDCO as
compared to the target PLF set by the Commission in FY 2010-11.
4.1.40 The Commission also observed the justification given by TANGEDCO for lower PLF for
its various GTPS during FY 2010-11. In view of the justification given by TANGEDCO,
the Commission has decided to consider the PLF as submitted by TANGEDCO for
various GTPS in FY 2010-11 in its Petition. However the Commission has allowed the
Capacity charges on Pro-rata basis depending upon the Target PLF set in last Tariff Order
which has been discussed in the Chapter of Generation Tariff.
4.1.41 As regards energy availability from Gas Turbine Power Stations in FY 2011-12, the
Commission in the data gaps asked TANGEDCO to submit the actual generation up to
December 2011 and projections for the next three months, i.e., from January to March
2012. TANGEDCO in its reply submitted actual Gross Generation up to December 2011
and revised projections from January to March 2012 which is tabulated below:
Table 37: Revised Projections submitted by TANGEDCO for FY 2011-12
S. No Particulars
Actual Up to
Dec 2011 (MU)
Projections
January-March
2012 (MU)
FY 2011-12
(MU)
1
Tirumakottai GTPS (
Kovilkalappal)
519 173 692
2
Kuttalam GTPS
317 173 490
3
Basin Bridge GTPS
29 15 44
4
Valuthur Unit-I
543 164 707
5
Valuthur Unit-II
294 160 454

4.1.42 Based on the above data submitted by TANGEDCO, the PLF for various Generating
Stations is tabulated below:



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Table 38: PLF for Generating Stations
S. No Particulars FY 2011-12
1
Tirumakottai GTPS
(Kovilkalappal)
64.55%
2
Kuttalam GTPS
72.45%
3
Basin Bridge GTPS
5.71%
4
Valuthur Unit-I
67.29%
5
Valuthur Unit-II
55.22%

4.1.43 Since the above figures are based on 9 months actuals and 3 months projections, the
Commission has decided to consider the above PLF for various GTPS of TANGEDCO
during FY 2011-12 for arriving at energy availability.
4.1.44 For FY 2012-13, the Commission observed that the PLF projected by TANGEDCO for
its various GTPS is about 70% except BBGTPS and TGTPS. The Commission has
considered the PLF as projected for FY 2012-13 by TANGEDCO in its Petition for
Kuttalam GTPS and Valuthur-I and Valuthur-II GTPS. The Commission observed that
Basin Bridge GTPS is mainly operated with Naptha (fuel) in order to meet the peak
demand. The Commission observed that TANGEDCO has projected PLF of 11.60% for
BBGTPS in FY 2012-13 whereas the actual PLF during FY 2010-11 was 4.93%.
Therefore the Commission has maintained the PLF of 5.75% as considered for FY 2012-
13 in last Tariff Order.
4.1.45 As regards PLF of TGTPS, the Commission observed that the PLF of TGTPS is in the
range of 65%-70% and TANGEDCO achieved the actual PLF of 68.74% in FY 2010-11.
Therefore, the Commission has considered PLF of 68.75% for TGTPS in FY 2012-13 as
approved in Previous Tariff Order. The Commission has decided to adopt the following
PLF for various GTPS:
Table 39: PLF considered by the Commission for FY 2012-13
S. No Particulars Last Order Petition Commission
1 Kuttalam GTPS 77.08% 71.20% 71.20%
2 Basin Bridge GTPS 5.75% 11.60% 5.75%
3 TGTPS 68.75% 65.71% 68.75%
4 Valuthur GTPS-I 71.62% 78.50% 78.50%
5 Valuthur GTPS-II 78.37% 78.30% 78.30%


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Auxiliary Consumption
4.1.46 The Commission in Previous Tariff Order approved the following auxiliary consumption
for various stations:
Table 40: Auxiliary Consumption approved in Previous Tariff Order
S.
No
Particulars
Percentage
approved
1 Kuttalam GTPS 6%
2
Basin Bridge
GTPS 1%*
3 TGTPS 6%
4 Valuthur GTPS-I 6%
5 Valuthur GTPS-II 6%
* For the purpose of calculation of energy availability, the auxiliary consumption was taken as 0.58% in Previous
Tariff Order.
4.1.47 TANGEDCO in its Petition did not submit the auxiliary consumption for various
Generating Stations. However in the Format-7 annexed along with the Petition,
TANGEDCO submitted the auxiliary consumption in MU for various generating stations.
The auxiliary consumption as submitted in the formats for various Generating Stations is
tabulated below:
Table 41: Auxiliary Consumption submitted in the Petition
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Tirumakottai GTPS
(Kovilkalappal)
40 40 40
2
Kuttalam GTPS
12 32 40
3
Basin Bridge GTPS
0.32 0.33 1.22
4
Valuthur Unit-I
31 41 41
5
Valuthur Unit-II
18 40

Commissions View:
4.1.48 The Commission observed that in accordance with Regulation-37 (v) of TNERC Tariff
Regulations, 2005 the auxiliary consumption is required to be approved as percentage of
Gross Generation. Regulation-37 (v) of TNERC Tariff Regulations, 2005 states as under:
37. Norms of Operation
The norms of operation for Thermal Generating Stations shall be as under:


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(v) Auxiliary Energy Consumption
...
(b)Gas-based and Naptha based Generating Stations:
(i) Combined Cycle: 3%
(ii) Open Cycle: 1%

4.1.49 However the Commission in its Order dated July 31, 2010 relaxed the norms of auxiliary
consumption and permitted auxiliary consumption at 6% for the purpose of using gas
booster compressor by TANGEDCO from FY 2010-11 to FY 2012-13.
4.1.50 In order to arrive at auxiliary consumption percentage, the Commission relied upon the
gross generation (MU) and auxiliary consumption (MU) submitted by TANGEDCO in
the formats. The auxiliary consumption percentage as computed by the Commission is
tabulated below:
Table 42: Auxiliary Consumption percentage on the basis of formats
S. No Particulars
FY 2010-11 FY 2011-12
Gross
Gen.
Aux.
Con.
Aux.
Con.
Gross
Gen.
Aux.
Con.
Aux.
Con.
MU MU % MU MU %
1
Tirumakottai
GTPS
(Kovilkalappal)
650 40 6.19% 654 40 6.11%
2
Kuttalam GTPS
171 12 6.83% 414 32 7.73%
3
Basin Bridge GTPS
52 0.32 0.62% 91 0.33 0.36%
4
Valuthur Unit-I
562 31 5.52% 642 41 6.39%
5
Valuthur Unit-II
0 0 0.00% 462 18 3.90%

S. No Particulars
FY 2012-13
Gross Gen. Aux. Con. Aux. Con.
MU MU %
1
Tirumakottai GTPS
(Kovilkalappal)
621 40 6.44%
2 Kuttalam GTPS 630 40 6.35%
3 Basin Bridge GTPS 122 1.22 1.00%
4 Valuthur Unit-I 653 41 6.28%
5 Valuthur Unit-II 632 40 6.33%


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4.1.51 The Commission observed that the auxiliary consumption for TGTPS and KGTPS in FY
2010-11 is more than the norm approved by the Commission in Previous Tariff Order. In
reply to data gaps raised by the Commission regarding justification for high auxiliary
consumption, TANGEDCO submitted the following reasons for high auxiliary
consumption during FY 2010-11:

a. Tirumakottai GTPS: The auxiliary consumption was higher than the norms due to
frequent failure of STG because of failure of condenser tubes during FY 2009-10. The
generation was also lesser due to inadequate gas supply.
b. Kuttalam GTPS: The unit was operated under part load (70-80%) during FY 2011-12.
Hence norms could not be achieved.
4.1.52 Since FY 2010-11 is already over and TANGEDCO has submitted the actual auxiliary
consumption during FY 2010-11 along with the justification for the deviation from the
norms approved in Previous Tariff Order in case of TGTPS and KGTPS, the Commission
has decided to approve the same for FY 2010-11. However the Commission has allowed
the recovery of capacity charges on pro-rata basis as the consumers are already burdened
with the high cost of power purchase due to the energy purchased in place of non-
availability of own generating stations.
4.1.53 As regards FY 2011-12, the Commission in the data gaps asked TANGEDCO to submit
the actual generation up to December 2011 and projections for the next three months, i.e.,
from January to March 2012. TANGEDCO in its reply dated January 25, 2012 submitted
actual auxiliary consumption% along with the Gross generation up to December 2011
and projections from January to March 2012.
4.1.54 Subsequently, TANGEDCO vide its letter dated March 4, 2012 resubmitted the net
generation for FY 2011-12 for all of its generating stations based upon 10 months actual,
i.e., from April 2011 to January 2012 and 2 months projections, i.e., February 2012 to
March 2012. The Commission observed that the net generation for various Gas Turbine
stations resubmitted by TANGEDCO on March 4, 2012 is same as that submitted earlier.
4.1.55 The Commission observed that TANGEDCO in its latest submission did not submit
gross generation. The Commission has calculated the auxiliary consumption on the basis
of the PLF approved for various Gas Turbine Power Stations for FY 2011-12 in this
Order and the net generation submitted by TANGEDCO in its latest submission dated

136 | P a g e

March 4, 2012. The auxiliary consumption as calculated for FY 2011-12 is tabulated
below:
Table 43: Auxiliary Consumption computed for FY 2011-12
Particulars
Gross
Generation
(MU)
Net
Generation
(MU)
Auxiliary
Consumption
(MU)
Auxiliary
Consumption %
TGTPS 691 650 41 6.00%
KGTPS 490 457 33 6.67%
BBGTPS 44 44 0.13 0.30%
Valuthur Unit-I 707 666 42 5.87%
Valuthur Unit-II 454 428 27 5.84%
Total 2386 2244 142
* On the basis of revised gross generation submitted by TANGEDCO vide letter dated January 25, 2012 and net
generation submitted submitted by TANGEDCO vide letter dated March 4, 2012
4.1.56 As regards Auxiliary Consumption of various GTPS in FY 2012-13, the Commission
observed that TANGEDCO has projected higher auxiliary consumption for all GTPS.
The Commission is of the view that the non-achievement of the targets set by the
Commission in respect of various performance parameters does not fulfil the purpose of
this exercise. Therefore TANGEDCO should attempt to achieve the performance
parameters in accordance with the target set by the Commission. The Commission has
already relaxed the norms for auxiliary consumption up to 6% in Previous Tariff Order.
The Commission has capped the auxiliary consumption for all GTPS except BBGTPS at
6%.
4.1.57 As regards BBGTPS, the Commission observed that TANGEDCO has submitted actual
auxiliary consumption during FY 2010-11 and up to December 2011 is 0.62% and 3.43%
respectively which seems to be incorrect. In absence of any reliable data from
TANGEDCO, the Commission has maintained the auxiliary consumption as 1% in FY
2012-13 as approved in Previous Tariff Order but for the purpose of calculation of energy
availability, auxiliary consumption of 3.43% based upon actual up to December 2011 has
been considered. Though this power station was established as a peaking power station,
in view of prohibitive naptha prices, it is not being operated even during peak hours. The
generation from this station is very limited. In view of this the auxiliary consumption also
cannot be estimated accurately. This station is being operated as synchronous condenser
as facility was available for operating the gas turbines as synchronous condenser. The gas
turbine is started and brought upto full speed after which the unit is synchronized with the
grid. Thereafter the fuel supply is cut off and the gas turbine slows down and finally gets

137 | P a g e

decoupled from the generator through the operation of a clutch. The generator continues
to be in synchronism with the grid but operates as synchronous condenser. In this process
it supplies VAR to system for compensation. It is understood that this kind of operation
of Basin Bridge Gas Turbine Station has resulted in improving the voltage profile in the
surrounding area and also improved the real power generation of North Chennai TPS.
The operation of the Basin Bridge Gas Turbine Station as synchronous condensers will
have to be continued to further optimize the VAR Compensation to the system.
4.1.58 The auxiliary consumption for various Gas Turbine Power Stations as considered by the
Commission for FY 2012-13 is tabulated below:
Table 44: Auxiliary Consumption of GTPS in FY 2012-13
S. No Particulars Last Order Petition Commission
1 Kuttalam GTPS
6% 6.35% 6%
2 Basin Bridge GTPS
0.58% 1.00% 3.43%
3 TGTPS
6% 6.44% 6%
4 Valuthur GTPS-I
6% 6.28% 6%
5 Valuthur GTPS-II
6% 6.33% 6%

Net Generation
4.1.59 On the basis of above discussion, the net generation as submitted by TANGEDCO in its
Petition and that computed by the Commission in this Tariff Order for Gas Turbine
Power Stations from FY 2010-11 to FY 2012-13 is tabulated below:
Table 45: Net Generation for GTPS approved by the Commission in FY 2010-11
(MU)
S. No Particulars
FY 2010-11
Last Year
Order
Petition
Revised Submission
dated 4.03
Commission
1 Kuttalan GTPS
641 157 157 157
2
Basin Bridge
GTPS 60 51 52 52
3 TGTPS
610 649 610 610
4 Valuthur GTPS-I
560 531 531 531
5 Valuthur GTPS-II
446 0
6 Total
2317 1388 1349 1349



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Table 46: Net Generation for GTPS approved by the Commission in FY 2011-12
(MU)
S. No Particulars
FY 2011-12
Last Year
Order
Petition
Revised Submission
dated 4.03
Commission
1 Kuttalan GTPS
641 382 457 457
2
Basin Bridge
GTPS
60 90 44 44
3 TGTPS
615 654 650 650
4 Valuthur GTPS-I
560 601
1093 1093
5 Valuthur GTPS-II
594 444
6 Total
2470 2172 2244 2244

Table 47: Net Generation for GTPS approved by the Commission in FY 2012-13
(MU)
S. No Particulars
FY 2012-13
Last Year
Order
Petition
Revised Submission
dated 4.03
Commission
1 Kuttalan GTPS
641 590 Not submitted 592
2
Basin Bridge
GTPS
60 121 Not submitted 58
3 T GTPS
581 581 Not submitted 611
4 Valuthur GTPS-I
560 611 Not submitted 614
5 Valuthur GTPS-II
594 592 Not submitted 593
6 Total
2436 2495 2469

Hydel Generation:
4.1.60 The Commission in Previous Tariff Order approved the energy availability from hydel
generation by considering 25% PLF in accordance with Regulation 76(2) of TNERC
Tariff Regulations, 2005. The Commission deducted the energy on account of auxiliary
consumption, i.e., 23 MU and consumption by Kadamparai PSHES for pump mode, i.e.,
369 MU for arriving at net availability from hydel generation from FY 2010-11 to FY
2012-13. The hydel generation as approved by the Commission from FY 2010-11 to FY
2012-13 in Previous Tariff Order is tabulated below:
Table 48: Net Hydel Generation approved in Previous Tariff Order
S. No Particulars Units FY 2010-11 FY 2011-12 FY 2012-13
1 Net Hydel Generation MU 4397 4439 4601

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4.1.61 TANGEDCO in its Petition submitted that the Gross Hydel Generation for FY 2010-11 is
5108 MU. However if for reasons beyond control hydel generation is significantly
different then it would affect the overall generation as well as purchase requirements and
consequently the financial position of board.
Table 49: Net Hydel Generation submitted in the Petition
S. No Particulars Units FY 2010-11 FY 2011-12 FY 2012-13
1 Net Hydel Generation MU 5085 5561 6025

Commissions View:
4.1.62 In reply to data gaps raised by the Commission, TANGEDCO revised the energy
available from various Hydel Stations in FY 2010-11 from 5085 MU to 4474 MU.
Similarly for FY 2011-12, TANGEDCO revised the energy available from various Hydel
Stations in FY 2011-12 from 5561 MU to 4912 MU.
4.1.63 In another data gap raised by the Commission, TANGEDCO submitted actual gross
generation and auxiliary consumption from various Hydro Power Plants from FY 2001-
02 to FY 2011-12. The Commission observed that consumption by Kadamparai PSHES
for pump mode was not excluded from this data. Subsequent to this, the Commission in
various discussions held with TANGEDCO officials asked to submit the data for
Kadamparai PSHES for pump mode and the gross generation from Kadamparai PSHES.
TANGEDCO in reply submitted the data for Kadamparai pump mode from FY 2001-02
to FY 2011-12.
4.1.64 From the details related to Kadamparai PSHES Mode as submitted by TANGEDCO, the
Commission observed that consumption of Kadamparai Pump Mode is more than the net
generation of Kadamparai which is normal in a Pump Storage Power Project. The correct
cost of generation as well as the energy required for pumping in Kadamparai power
house can be done only if the block-wise UI rates is available both for the generation and
pumping of water. In the absence of such data the net energy availability or requirement
will be taken into account and appropriate financial treatment will be given.


140 | P a g e

4.1.65 Therefore the Commission has considered the net energy available on account of
Kadamparai PSHES in FY 2010-11 and FY 2011-12 after adjusting consumption (which
is negative) of Kadamparai Pump mode separately in energy requirement table.
4.1.66 The hydro generation from FY 2010-11 and FY 2011-12 is tabulated below:
Table 50: Hydro Generation (MU) for FY 2010-11 and FY 2011-12
S. No Particulars FY 11 FY 12
1
Net Hydel Gen. on account
of hydro plants excluding
Kadamparai
4515 4701

4.1.67 As regards FY 2012-13, the Commission feels that 6025 MU as submitted by
TANGEDCO in its Petition is very high. For calculation of net generation from Hydro
Power Plants, the Commission has relied upon previous years data. The Commission has
observed the previous ten years trend. The Commission observed that the net generation
during FY 2002-03 and FY 2003-04 is abnormal as these were draught years having less
rainfall, Hence, the Commission has taken last 8 years average, i.e., from FY 2004-05 to
FY 2011-12 and considered the same as net hydel generation during FY 2012-13. The net
hydel generation on account of existing capacity is tabulated below:
Table 51: Net Hydel Generation
(MU)
S. No
Financial
Years
Net Hydro Generation
on account of hydro
plants exc. Kadamparai
1
FY 2004-05 4153
2
FY 2005-06 5531
3
FY 2006-07 5849
4
FY 2007-08 5971
5
FY 2008-09 5040
6
FY 2009-10 5122
7
FY 2010-11 4515
8
FY 2011-12 4701
9
Average
hydro
generation
5110


141 | P a g e

4.1.68 The Commission observed that TANGEDCO has not projected the hydro generation
accurately. Therefore the Commission directs TANGEDCO to project the hydro
generation accurately and submit the same within 3 months of the issuance of this Order.
4.1.69 In reply to data gaps, TANGEDCO submitted the list of new hydel projects to be
commissioned during FY 2012-13 along with the Commissioning dates. The Commission
has considered PLF of 25% and auxiliary consumption of 1% for projecting energy
availability from new hydel projects. The energy available from the new hydel projects to
be commissioned during FY 2012-13 is shown as under:
Table 52: Energy Available from New Hydel Projects
Particulars
Installed
Capacity
COD Next FY Days PLF Aux. Con. Net Gen.
MW % % MU
Periyar-II
2.5
01-Apr-12 01/31/2013 305 25% 1% 4.53
Periyar-III
4
01-Jul-12 01/31/2013 214 25% 1% 5.08
Periayr-IV
2.5
01-Jun-12 01/31/2013 244 25% 1% 3.62
BhavaniBarrage-I
10
01-Nov-12 01/31/2013 91 25% 1% 5.41
BhavaniBarrage-
II 10
01-Jul-12 01/31/2013 214 25% 1% 12.71
Bhavani Kattalai-
II 30
01-Nov-11* 01/31/2012 365 25% 1% 65.04
Bhavani Kattalai-
III (Unit-I) 15
01-Jul-12 01/31/2013 214 25%
1%
19.07
Bhavani Kattalai-
III (Unit-II) 15
01-Aug-12 01/31/2013 183 25%
1%
16.31
Total
89


131.77

* It has been assumed that the energy available during FY 12 for this hydel project has been considered by
TANGEDCO in revised submission of FY 12.

The energy availability from Hydel Generation as approved by the Commission from FY 2010-
11 to FY 2012-13 is tabulated below:
Table 53: Net Hydel Generation approved by the Commission in FY 2010-11
(MU)
S. No Particulars
FY 2010-11
Last Year
Order
Petition
Revised
Submission
dated 4.03.12
Commission
A Existing Hydro 4397 5085 4474 4515

142 | P a g e


Table 54: Net Hydel Generation approved by the Commission in FY 2011-12
(MU)
S. No Particulars
FY 2011-12
Last Year
Order
Petition
Revised
Submission
dated 4.03.12
Commission
A Existing Hydro 4439 5561 4912 4701

Table 55: Net Hydel Generation approved by the Commission in FY 2012-13
(MU)
S. No Particulars
FY 2012-13
Last Year
Order
Petition
Revised
Submission
dated 4.03.12
Commission
A Existing Hydro 4601 6025 Not Submitted 5110
B New Cap. Addition 0 0 Not Submitted 132
C
Total Hydro (A +
B)
4601 6025 5242

Wind Generation:
4.1.70 The Commission in Previous Tariff Order approved net generation of 10 MU
corresponding to 17.55 MW installed capacity of wind mills owned by TNEB.
4.1.71 TANGEDCO in its Petition submitted that it has an installed capacity of 17.55 MW
which was commissioned during 1990s. The net available energy from Wind Mills from
FY 2010-11 as submitted by TANGEDCO is tabulated below:
Table 56: Net energy available from Wind from FY 2010-11 to FY 2012-13
S. No Particulars Unit
FY 2010-11 FY 2011-12 FY 2012-13
A Wind Generation MU 13 20 21






143 | P a g e

Commissions View:
4.1.72 In reply to data gaps raised by the Commission, TANGEDCO submitted the actual
energy available from Wind Mills during FY 2010-11 and FY 2011-12 as 12.675 MU
and 11.314 MU respectively.
4.1.73 For FY 2010-11 and FY 2011-12, the Commission has considered the revised submission
of TANGEDCO.
4.1.74 As regards energy availability from wind mills during FY 2012-13, the Commission has
considered the same energy as actually available in FY 2011-12. The energy from wind
mills as approved by the Commission from FY 2010-11 to FY 2012-13 in this Tariff
Order is tabulated below:
Table 57: Energy available from Wind Mills in FY 2010-11
(MU)
S. No Particulars
FY 2010-11
Last Year
Order
Petition Revised Submission Commission
A
Wind
Generation
10 13 13 13

Table 58: Energy available from Wind Mills in FY 2011-12
(MU)
S. No Particulars
FY 2011-12
Last Year
Order
Petition Revised Submission Commission
A
Wind
Generation
10 20 11 11

Table 59: Energy available from Wind Mills in FY 2012-13
(MU)
S. No Particulars
FY 2012-13
Last Year
Order
Petition
Revised Submission
dated 4.03
Commission
A
Wind
Generation
10 21 Not Submitted 11

144 | P a g e

Energy Available from Other Sources:
4.1.75 TANGEDCO in its Petition has included power purchase quantum from the following
sources:
1. Central Generating Stations (CGS)
2. Independent Power Producers (IPPs)
3. Captive/Cogeneration and Non-Conventional energy sources
4.1.76 The energy availability from the above mentioned sources as submitted by TANGEDCO
and approved by the Commission in this Tariff Order has been discussed in detail.
Central Generating Stations:
4.1.77 The Commission in Previous Tariff Order approved the energy from Central Generating
Stations (CGS) on the basis of the allocated share to TANGEDCO. The Commission
considered 85% Plant Availability Factor for all CGS and Joint ventures and 70% for the
proposed addition from Kaiga APS and Kalpakkam APS. The power purchase quantum
from CGS from FY 2010-11 to FY 2012-13 as approved by the Commission in Previous
Tariff Order is tabulated below:
Table 60: Energy Available from CGS approved by the Commission in Previous Tariff Order
S. No Particulars Unit FY 2010-11 FY 2011-12 FY 2012-13
1
Energy Available
from CGS
MU 21348 27333 35723

4.1.78 TANGEDCO in its Petition submitted that the energy availability from existing Central
Generating Stations has been assumed to remain unchanged in the ensuing financial
years. The Commissioning schedule has been taken into account while formulating the
projection of the power purchase from new CGS.
4.1.79 TANGEDCO in its Petition projected the energy availability from FY 2010-11 to FY
2012-13 from Central Generating Stations which is tabulated below:
Table 61: Energy Available from CGS as submitted by TANGEDCO
S. No Particulars Unit FY 2010-11 FY 2011-12 FY 2012-13
1
Energy Available
from CGS
MU 21633 23297 30710



145 | P a g e

Commissions View:
4.1.80 The Commission observed that TANGEDCO has submitted the power purchase quantum
from various CGS during FY 2010-11 which includes UI also. Since TANGEDCO in its
Petition has submitted actual quantum purchased from CGS during FY 2010-11, the
Commission has considered the same for FY 2010-11.
4.1.81 As regards power purchase quantum from CGS during FY 2011-12, the Commission
asked TANGEDCO to submit the actual power purchased till December 2011 and revised
projections for next three months, i.e., from January 2012 to March 2012. In reply
TANGEDCO submitted the revised projection on the basis of actual power purchased
from CGS till December 2011.
4.1.82 The Commission observed that TANGEDCO in its revised submission has reduced the
power purchase quantum from NTPC-Kayamkulam, Kudankulam APS and NLC-TS-II
Expansion during FY 2011-12. The Commission has considered the power purchase
quantum from CGS during FY 2011-12 as per the revised submission of TANGEDCO.
4.1.83 For FY 2012-13, the Commission observed that TANGEDCO has submitted power
purchase quantum from existing CGS on the basis of capacity allocation to TANGEDCO.
The Commission has accepted the projection of power purchase quantum on account of
existing CGS as submitted by TANGEDCO in the Petition. The Commission further
observed that TANGEDCO has also projected 145 MU on account of UI along with
CGS. The Commission is of the view that UI is not a source of power purchase and hence
cannot be considered at the time of advance estimation of availability of power
4.1.84 In case of new capacity addition in CGS during FY 2012-13, TANGEDCO has furnished
revised COD along with installed capacity and its share in net availability for upcoming
CGS in FY 2012-13. The Commission has also obtained COD details from NLC and
NTPC for their upcoming Units. Based on the CODs furnished by TANGEDCO, NLC
and NTPC, the Commission has calculated the net energy available from new CGS
pertaining to TANGEDCOs share during FY 2012-13.
Table 62: Energy available from upcoming Power Stations during FY 2012-13
Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
NLC TS
Expansion-II
(Unit-I)
250 31-Mar-12 03/31/2013 365 97.75 2190 856

146 | P a g e

Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
NLC TS
Expansion-II
(Unit-II)
250 15-Sep-12 03/31/2013 197 97.75 1182 462
Total 500
195.50 3372 1318

Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
Kudankulam
(Unit-I)
1000 15-May-12 03/31/2013 320 392.70 7680 3016
Kudankulam
(Unit-II)
1000 15-Feb-13 03/31/2013 44 393.60 1056 416
Total 2000
786.30 8736 3432
Considered
50%
1716

Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
Simhadri (Unit-
III)
500 16-Sep-11 03/31/2013 365 80.75 4380 707
Simhadri (Unit-
IV)
500
31-Mar-12
03/31/2013 365 80.75 4380 707
Total 1000
161.50 8760 1414

Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
NTPC-TNEB
(Unit-I)
500 31-Mar-12 03/31/2013 365 295 4380 2584
NTPC-TNEB
(Unit-II)
500
15-Feb-13
03/31/2013 44 295 528 312
Total 1000
590 4908 2896

Particulars
Installed
Capacity
(MW)
COD Next FY Days
TANGEDCO
Share (MW)
Total
Gen
(MU)
TANGEDCO
Share (MU)
MAPS Addl.
500 31-May-12 03/31/2013 304 142 3648 1036
Considered
50%
518


147 | P a g e

4.1.85 As regards Kudankulam APS and MAPS Additional, the Commission has considered the
energy availability as 50% from these two Power Stations in view of uncertainties in the
Commercial date of Operation.
4.1.86 The Power Purchase Quantum as approved by the Commission from FY 2010-11 to FY
2012-13 is tabulated below:
Table 63: Energy Available from CGS in FY 2010-11 as approved by the Commission
(MU)
S. No Particulars
FY 2010-11
Petition
Rev. sub. Dated
4.03
Commission
1 NLC-TS-I 3066 3066 3066
2 NLC-TS-II (Stage-I)
3042
1214 1214
NLC-TS-II (Stage-II) 1828 1828
3 NLC-TS-I Expansion 1509 1509 1509
4 NTPC SR (I & II) 4039 4039 4039
5 NTPC SR (III) 1024 1024 1024
6 NTPC ER 735 735 735
7 NTPC - Talcher II 3664 3664 3664
8 Kayankulam 854 854 854
9 MAPS 1398 1399 1399
10 KAIGA 860 860 860
11 Simahadri 0 0 0
12 Kudankulam 0 0
13 NLC-TS-IIExpansion 0 0
14 MAPC (Addl.) 0 0
15 NTPC-TNEB (JV) 0 0
16 UI 1441 1441 1441
17 Total 21633 21633 21633

Table 64: Energy Available from CGS in FY 2011-12 as approved by the Commission
(MU)
S. No Particulars
FY 2011-12
Petition
Rev. sub.
Dated 4.03
Commission
1 NLC-TS-I 3066 3066 3066
2 NLC-TS-II (Stage-I)
3242
1503 1503
NLC-TS-II (Stage-II) 1739 1739
3 NLC-TS-I Expansion 1609 1609 1609

148 | P a g e

S. No Particulars
FY 2011-12
Petition
Rev. sub.
Dated 4.03
Commission
4 NTPC SR (I & II) 4139 4139 4139
5 NTPC SR (III) 1105 1105 1105
6 NTPC ER 885 885 885
7 NTPC - Talcher II 3690 3690 3690
8 Kayankulam 250 205 205
9 MAPS 1498 1499 1499
10 KAIGA 1107 1107 1107
11 Simahadri 328 328 328
12 Kudankulam 333
13 NLC-TS-II Expansion 1295
14 MAPS (Addl.) 0
15 NTPC-TNEB (JV) 0
16 UI 750 750 750
17 Total 23297 21625 21625

Table 65: Energy Available from CGS in FY 2012-13 as approved by the Commission
(MU)
S. No Particulars
FY 2012-13
Petition Commission
1 NLC-TS-I 3066 3066
2 NLC-TS-II (Stage-I)
3272 3272
NLC-TS-II (Stage-II)
3 NLC-TS-I Expansion 1624 1624
4 NTPC SR (I & II) 4164 4164
5 NTPC SR (III) 1125 1125
6 NTPC ER 897 897
7 NTPC - Talcher II 3705 3705
8 Kayankulam 0 0
9 MAPS 1508 1508
10 KAIGA 1178 1178
11 Simahadri 925 1415
12 Kudankulam 3245 1716
13 NLC-TS-II Expansion 2135 1318
14 MAPS (Addl.) 256 518
15 NTPC-TNEB (JV) 3465 2896

149 | P a g e

S. No Particulars
FY 2012-13
Petition Commission
16 UI 145
17 Total 30710 28402

Independent Power Producers (IPPs):
4.1.87 The Commission in Previous Tariff Order approved the energy from Independent Power
Producers (IPPs) at 85% of the installed capacity (MW). The Commission approved total
power purchase quantum on the basis of Merit Order Despatch.
4.1.88 TANGEDCO in its Petition has submitted that it has entered into Power Purchase
Agreements with several Independent Power Producers for procuring electricity. It
further submitted that the power purchase price from these sources is governed by the
applicable power purchase agreements entered into with these projects. TANGEDCO
projected the following quantum of Power Purchase from FY 2010-11 to FY 2012-13
from IPPs in its Petition:
Table 66: Energy Available from IPPS as submitted in the Petition
(MU)
S. No Particulars
Installed
Capacity (MW) FY 2010-11 FY 2011-12 FY 2012-13
1 GMR
196
875 795 495
2 Samalpatti
105.66
378 575 575
3 PPN
330.5
2494 2375 2395
4 Madurai
106
353 575 575
5 ST-CMS
250
1652 1780 1795
6 ABAN
113.2
820 801 810
7 Penna
52.8
370 365 375
8 Total
1154.16
6942 7266 7020

Commissions View:
4.1.89 In its reply dated March 4, 2012, TANGEDCO revised the quantum of power purchase
from IPPs during FY 2010-11 from 6942 MU to 6945 MU. The Commission has
considered the revised submission of Petitioner TANGEDCO regarding IPPs during FY
2010-11.


150 | P a g e

4.1.90 As regards FY 2011-12, TANGEDCO revised the power purchase quantum purchased
from IPPs during FY 2011-12 from 7266 MU to 5982 MU on the basis of 9 months
actual data available up to December 2011. The Commission asked TANGEDCO the
reasons for purchasing costlier power from GMR as compared to the cheaper power
available from Penna, Aban and PPN. In reply TANGEDCO submitted that these power
plants were not able to provide energy due to shutdown and non-availability of fuel. The
Commission has considered the revised submission of TANGEDCO regarding Power
Purchase Quantum from IPPs.
4.1.91 For FY 2012-13, the Commission observed that TANGEDCO has projected less energy
availability from GMR PCL as compared to Samalpatti PPCL and Madurai PPCL. The
Commission has considered the power purchase quantum as submitted by TANGEDCO
in the Petition. However the Commission notes that the energy available from all the
three stations is much higher if PLF corresponding to full cost recovery is considered.
During advanced operation, interse Merit Order Despatch shall be followed for
despatching the stations. The Commission has allowed the power to be purchased from
IPPs on the basis of Merit Order Despatch for FY 2012-13. The Power Purchase quantum
from IPPs from FY 2010-11 to FY 2012-13 is tabulated below:
Table 67: Energy Available for FY 2010-11 as approved by the Commission
(MU)
Particulars
FY 2010-11
Last Year
Order
Petition
Revised
Submission
Commission
GMR 1300 875 875 875
Samalpatti 300 378 378 378
PPN 2259 2494 2496 2496
Madurai 540 353 353 353
ST-CMS 1809 1652 1653 1653
ABAN 850 820 820 820
Penna 400 370 370 370
Total
Quantum 7458 6942 6945 6945







151 | P a g e

Table 68: Energy Available for FY 2011-12 as approved by the Commission
(MU)
Particulars
FY 2011-12
Last Year
Order
Petition
Revised
Submission
Commission
GMR
300 795 962 962
Samalpatti
150 575 351 351
PPN
1406 2375 1483 1483
Madurai
179 575 333 333
ST-CMS
1574 1780 1711 1711
ABAN
850 801 776 776
Penna
400 365 366 366
Total
Quantum
4859 7266 5982 5982

Table 69: Energy Available for FY 2012-13 as approved by the Commission
(MU)
Particulars
FY 2012-13
Last Year
Order
Petition Commission
GMR 300 495 495
Samalpatti 150 575 575
PPN 1441 2395 2395
Madurai 151 575 575
ST-CMS 1574 1795 1795
ABAN 850 810 810
Penna 400 375 375
Total Quantum 4866 7020 7020

Captive/ Cogeneration and Non-Conventional energy sources:
4.1.92 The Commission in Previous Tariff Order approved the purchase from Captive Power
Plants in accordance with the Power Purchase quantum projected by TANGEDCO in its
Petition.


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4.1.93 As regards power purchase quantum from Bagasse based Cogeneration Power Plants, the
Commission in Previous Tariff Order approved power purchase quantum at the available
capacity level as the purchase from these sources fall outside the Merit Order Despatch.
4.1.94 For projection of quantum available from private wind mills in the Previous Tariff Order,
the Commission calculated the quantum by considering the Capacity Utilization Factor of
19.57% based on last three years average.
4.1.95 The quantum of power approved by the Commission from Non-Conventional Energy
Sources in the last Order is tabulated below:
Table 70: Quantum of energy approved in Previous Tariff Order
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 CPP 671 571 371
2 Cogeneration 810 1038 1276
3 Biomass 111 111 111
4
Private Wind
Mills 9458 9973 10487
5 Total 11050 11693 12245

4.1.96 TANGEDCO in its Petition submitted that it has entered into agreements with some of
the private energy generators owning captive generating sources and cogeneration
sources, which pump their surplus power into the Grid. TANGEDCO further submitted
that the power purchase quantum has been estimated on the basis of quantity of power
likely to be made available for sale based on prevailing trends. The Power Purchase
Quantum projected from various sources from FY 2010-11 to FY 2012-13 is tabulated
below:
Table 71: Quantum of energy submitted in the Petition
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 CPP 460 575 580
2 Solar 2 10 11
3 Wind 8707 9245 9988
4 Cogeneration 997 1135 1469
5 Biomass 110 115 120
6 Total 10276 11080 12168



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Commissions View:
4.1.97 During the discussion held with TANGEDCO Officials, it was communicated that the
wheeled energy of Open Access Consumers are booked under power purchase as well as
Sale of power. TANGEDCO submitted the details of energy wheeled from Wind,
Biomass, Cogen and Captive Generators.
4.1.98 The details submitted by TANGEDCO from FY 2010-11 to FY 2012-13 are tabulated
below:
Table 72: Details of Energy wheeled from FY 2010-11 to FY 2012-13
Particulars
Power
Purchase (MU)
Wheeled
Energy (MU)
Wind
FY 2010-11 5263 3169
FY 2011-12 5130 3942
FY 2012-13 5408 4141

Cogeneration
FY 2010-11 997 351
FY 2011-12 1135 400
FY 2012-13 1202 456

Biomass
FY 2010-11 110 0
FY 2011-12 115 0
FY 2012-13 56 0

CPP
FY 2010-11 460 595
FY 2011-12 575 673
FY 2012-13 582 762


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4.1.99 The Commission is of the view that the inclusion of energy on account of captive
consumption through wheeling in sales and power purchase is not correct and should be
treated in kind. Therefore, the Commission has not considered the energy wheeled on
account of wind, CPP, Cogeneration and Biomass in the sales as well as power purchase.
4.1.100The Commission has considered only the energy directly purchased from Wind, CPP,
Cogeneration and Biomass for calculating energy availability from FY 2010-11 to FY
2012-13 in accordance with the break-up submitted by TANGEDCO.
4.1.101As regards Solar Power Plants, the Commission has considered the energy availability as
submitted by TANGEDCO from FY 2010-11 to FY 2012-13 in the Petition.
4.1.102The quantum of energy available as approved by the Commission from FY 2010-11 to
FY 2012-13 is tabulated below:
Table 73: Quantum of energy available during FY 2010-11
(MU)
S.
No
Particulars
FY 2010-11
Last Year
Order
Petition
Revised
Submission
dated 24.02
Commission
1 CPP
671 460 460 460
2 Solar
0 2 2 2
3 Wind
9458 8707 8707 5263
4 Cogeneration
810 997 997 997
5 Biomass
111 110 110 110
6
Total
Quantum
11050 10276 10276 6833

Table 74: Quantum of energy available during FY 2011-12
(MU)
S.
No
Particulars
FY 2011-12
Last Year
Order
Petition
Revised
Submission
dated 4.03
Commission
1 CPP
571 575 575 575
2 Solar
0 10.27 10 10
3 Wind
9973 9245 9245 5130
4 Cogeneration
1038 1135 1135 1135
5 Biomass
111 115 115 115
6 Total
11693 11080 11081 6965

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S.
No
Particulars
FY 2011-12
Last Year
Order
Petition
Revised
Submission
dated 4.03
Commission
Quantum

Table 75: Quantum of energy available during FY 2012-13
(MU)
S.
No
Particulars
FY 2012-13
Last Year
Order
Petition Commission
1 CPP
371 580 582
2 Solar
0 11 11
3 Wind
10487 9988 5408
4 Cogeneration
1276 1469 1202
5 Biomass
111 120 56
6
Total
Quantum
12245 12168 7258

Renewable Purchase Obligation (RPO):
4.1.103In Para 8.18.4 of the comprehensive tariff order on wind energy (Order No.1 of 2009,
dated 20-03-2009), the Commission has fixed the Renewable Purchase Obligation (RPO)
at a minimum of 14% for 2010-11.
4.1.104As regards FY 2011-12, the Commission in first Amendment in Renewable Energy
Purchase Obligation Regulations, 2010 has fixed the RPO of 9% for all sources of
Renewable Energy put together and 0.05% for Solar separately.
4.1.105As regards target of RPO for future years, Tamil Nadu Electricity Regulatory
Commission (Renewable Energy Purchase Obligation) Regulations, 2010 states as under:

2.If the RPO for any of the year is not specified by the Commission, the RPO
specified for the previous year shall be continued beyond the period till any
revision is effected by the Commission in this regard.
4.1.106For FY 2012-13, the Commission has not prescribed any RPO Target. Therefore, the
Commission has considered same RPO Obligations as prescribed for FY 2011-12 till
determination of RPO Target for FY 2012-13.


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4.1.107Accordingly, the Commission has calculated the quantum to be purchased through RPO.
The details of power purchase quantum in FY 2010-11 and FY 2011-12 is tabulated
below:
4.1.108The Commission has applied the above mentioned percentages of RPO from FY 2010-11
to FY 2012-13 on the energy required determined for respective years in this Order.
Table 76: RPO Obligation
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Energy Requirement
68770 69240 70784
2
Purchase from
Renewable
9628 6232 6371
3 RPO% for all Sources
14%
9% 9%
4 RPO% for solar
0.05% 0.05%

4.1.109As discussed earlier the Commission in this Order has allowed only direct purchased
quantum on account of wind energy from FY 2010-11 to FY 2012-13. The Commission
has given the appropriate treatment in the energy sales also and reduced the quantum of
wheeled energy included in sales.
4.1.110The actual energy purchased through Renewable Energy sources during FY 2010-11 and
projected to be purchased from FY 2011-12 to FY 2012-13 on the basis of quantum of
energy approved through various sources in this Order is tabulated below:
Table 77: Renewable Energy Purchase from FY 2010-11 to FY 2012-13
(MU)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Wind 5263 5130 5408
2
Small Hydro
212 207 262
3
Cogeneration 997 1135 1202
4
Biomass 110 115 56
5
Own wind generation 13 11 11
6
Total except solar 6596 6598 6938
7
Solar 2 10 11
8
Total including solar 6598 6609 6949
9
RPO % actually
achieved for all sources
except solar
9.59% 9.53% 9.80%
10
Solar 0.0030% 0.02% 0.02%

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S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
11
RPO% actually
achieved for all sources
9.59% 9.54% 9.82%

4.1.111The Commission observed that TANGEDCO has met the target of RPO, i.e., 14% in FY
2010-11 based on the total Renewable energy utilised in the area of the licensee. .
4.1.112As regards FY 2011-12 and FY 2012-13, the Commission observed that for all RE
sources put together, TANGEDCO will achieve the target of 9% during FY 2011-12 and
FY 2012-13.
4.1.113As against the target of 0.05% in case of Solar, TANGEDCO has projected the
achievement of 0.02% during FY 2011-12 and FY 2012-13. Also TANGEDCO has not
requested the Commission to provide waiver for the same. The Commission in this Order
has provisionally considered the power purchase from Solar as submitted by
TANGEDCO for FY 2011-12 and FY 2012-13. However TANGEDCO is expected to
fulfil the RPO Target in terms of Solar also. The Commission will consider the actual
quantum purchased on account of Solar during FY 2011-12 during truing-up in next
Tariff determination exercise.

Traders :
4.1.114The Commission in Previous Tariff Order considered the following quantum on account
of purchase from Traders from FY 2010-11 to FY 2012-13:
Table 78: Energy on account of Traders from FY 2010-11 to FY 2012-13
(MU)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Traders
4538 2000 2000

4.1.115TANGEDCO submitted the energy quantum on account of Traders from FY 2010-11 to
FY 2012-13 in the Petition which is tabulated below:
Table 79: Energy on account of Traders from FY 2010-11 to FY 2012-13
(MU)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Traders
10483 12500 5365



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Commissions View:
4.1.116The Commission observed that TANGEDCO has purchased considerable quantum of
energy from Traders during FY 2010-11 and FY 2011-12 in order to meet its energy
requirement. The Commission has considered the quantum on account of Traders
according to the latest submission of TANGEDCO for respective years. The average cost
of power purchased from Traders during FY 2010-11 and FY 2011-12 as submitted by
TANGEDCO in the revised submission is Rs. 5.32/ kWh and Rs. 6.82/ kWh. However
the Commission has capped the average rate of power purchase rate of Rs. 5.32/ kWh
during FY 2010-11 and FY 2011-12. For FY 2012-13, the Commission has considered
2000 MU on account of Traders as considered in last Tariff Order. The energy considered
on account of Traders is tabulated below:
Table 80: Energy approved on account of Traders from FY 2010-11 to FY 2012-13
(MU)
Particulars
FY 2010-11 FY 2011-12
Petition
Revised
Submission
Commission Petition
Revised
Submission
Commission
Traders
10483 10540 10540 12500 9400 9400

Particulars
FY 2012-13
Petition Commission
Traders
5365 2000

4.1.117The Commission directed TANGEDCO to follow the Government of India (GoI)
guidelines under Section-63 for power purchase for less than 1 year which is under
finalisation. The Commission also directs TANGEDCO to take prior approval before
purchasing the energy from Traders higher than the quantum and rate specified by the
Commission in this Tariff Order.

Total energy available from all Sources:
4.1.118Based upon the above discussion in respect of individual sources, the total energy
available from all sources as submitted in the Petition and as approved in the Order is
tabulated below:



159 | P a g e

Table 81: Total Energy Available from all Sources
(MU)
Particulars
FY 2010-11 FY 2011-12
Petition
Revised
Submission
Commission Petition
Revised
Submission
Commission
Own Generation
ETPS 1176 1176 1176 851 851 851
TTPS 6523 6522 6522 7018 7018 7018
MTPS 5549 5549 5549 6235 6234 6234
NCTPS 4110 4110 4110 4621 4621 4621
NCTPS (Stage-II)
(Unit-I)

NCTPS (Stage-II)
(Unit-2)

MTPS Stage-III 259 259 0
Subtotal-Thermal 17358 17357 17357 18984 18983 18724

Gas Turbine
Stations

Kuttalam 157 157 157 382 457 457
Basin Bridge 52 52 52 90 44 44
TGTPS 649 610 610 654 650 650
Valuthur -I 531 531 531 601
1093
629
Valuthur-II 444 465
Subtotal-Gas 1389 1349 1349 2172 2244 2244

Hydro Stations
Erode HEP 767
4515
846
4701
Kadamparai HEP 1303 1279
Kundah HEP 2155 2497
Tirunelveli HEP 860 939
New Hydro addition
Subtotal-Hydro 5085 4474 4515 5561 4912 4701

Wind
Tirunelveli &
Udmalpet
13 13 13 20 20 11

Total-Own
Generation
23845 23192 23233 26737 26159 25680

Sources other than

160 | P a g e

Particulars
FY 2010-11 FY 2011-12
Petition
Revised
Submission
Commission Petition
Revised
Submission
Commission
own generation
IPPs
GMR 875 875 875 795 962 962
Samalpatti 378 378 378 575 351 351
PPN 2494 2496 2496 2375 1483 1483
Madurai 353 353 353 575 333 333
ST-CMS 1652 1653 1653 1780 1711 1711
ABAN 820 820 820 801 776 776
Penna 370 370 370 365 366 366
Sub-total-IPPs 6942 6945 6945 7266 5982 5982

NCES & CPP
CPP 460 460 460 575 575 575
Solar 2 2 2 10 10 10
Wind 8707 8707 5263 9245 9245 5130
Cogeneration 997 997 997 1135 1135 1135
Biomass 110 110 110 115 115 115
Sub-total-NCES &
CPP
10276 10276 6833 11080 11081 6965

CGS
NLC-TS-I 3066 3066 3066 3066 3066 3066
NLC-TS-II (Stage-I)
3042
1214 1214
3242
1503 1503
NLC-TS-II (Stage-II) 1828 1828 1739 1739
NLC-TS-I Expansion 1509 1509 1509 1609 1609 1609
NTPC SR (I & II) 4039 4039 4039 4139 4139 4139
NTPC SR (III) 1024 1024 1024 1105 1105 1105
NTPC ER 735 735 735 885 885 885
NTPC - Talcher II 3664 3664 3664 3690 3690 3690
Kayankulam 854 854 854 250 205 205
MAPS 1398 1399 1399 1498 1499 1499
KAIGA 860 860 860 1107 1107 1107
Simahadri 0 0 0 328 328 328
Kudankulam 0 0 0 333 0 0
NLC-TS-II Expansion 0 0 0 1295 0 0
MAPS (Addl.) 0 0 0 0 0 0
NTPC-TNEB (JV) 0 0 0 0 0 0
PGCIL-SR & ER
UI 1441 1441 1441 750 750 750

161 | P a g e

Particulars
FY 2010-11 FY 2011-12
Petition
Revised
Submission
Commission Petition
Revised
Submission
Commission
Subtotal-CGS 21633 21633 21633 23297 21625 21625

Traders 10483 10540 10540 12500 9400 9400

Wheeling on account
of cogeneration,
biomass, CPP etc.
968 1327

Grand Total 73180 73555 69183 80880 75574 69653



Particulars
FY 2012-13
Petition Commission
Own Generation
ETPS 1361 680
TTPS 6896 6938
MTPS 5971 5960
NCTPS 4184 4391
NCTPS (Stage-II) (Unit-
I)
2130
1760
NCTPS (Stage-II) (Unit-
2)
3030
MTPS Stage-III ( 300
MW available from
March 12)
3528
1913
MTPS Stage-III ( Rest
300 MW available from
June 12)
1515
Subtotal-Thermal 24070 26186

Gas Turbine Stations
Kuttalam 590 592
Basin Bridge 121 58
TGTPS 581 611
Valuthur -I 611 614
Valuthur-II 592 593
Subtotal-Gas 2495 2469

Hydro Stations

162 | P a g e

Particulars
FY 2012-13
Petition Commission
Erode HEP 916
5110
Kadamparai HEP 1385
Kundah HEP 2706
Tirunelveli HEP 1018
New Hydro addition
132
Subtotal-Hydro
6025 5242


Wind
Tirunelveli &
Udmalpet
21 11


Total-Own Generation
32611 33908


Sources other own
generation

IPPs

GMR
495 495
Samalpatti
575 575
PPN
2395 2395
Madurai
575 575
ST-CMS
1795 1795
ABAN
810 810
Penna
375 375
Sub-total-IPPs
7020 7020


NCES & CPP

CPP
580 582
Solar
11 11
Wind
9988 5408
Cogeneration
1469 1202
Biomass
120 56
Sub-total-NCES &
IPPs
12168 7258


CGS

NLC-TS-I
3066 3066
NLC-TS-II (Stage-I)
3272 3272
NLC-TS-II (Stage-II)
NLC-TS-I Expansion
1624 1624
NTPC SR (I & II)
4164 4164

163 | P a g e

Particulars
FY 2012-13
Petition Commission
NTPC SR (III)
1125 1125
NTPC ER
897 897
NTPC - Talcher II
3705 3705
Kayankulam
0 0
MAPS
1508 1508
KAIGA
1178 1178
Simahadri
925 1415
Kudankulam
3245 1716
NLC-TS-II Expansion
2135 1318
MAPS (Addl.)
256 518
NTPC-TNEB (JV)
3465 2896
PGCIL-SR & ER

UI
145 0
Subtotal-CGS
30710 28402


Traders
5365 2000


Wheeling on account of
cogeneration, biomass,
CPP etc.



Grand Total
87874 78588



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5 FIXED COST
Capital Expenditure and Capitalisation
5.1 Segregation of Fixed Assets
5.1.1 TANGEDCO submitted that segregation of fixed assets for FY 2009-10 is done based on:
a) For the financial year 2009-10, the opening balance of fixed assets are segregated to
the three companies based on the segregation notified by Government of Tamil Nadu
in the Transfer Scheme vide G.O. Ms. 100 dated 19-10-2010.
b) During the year, additions and deductions for the transmission assets at distribution
circles (i.e. Plant and Machinery and Lines & Cables), a ratio of 55:45 is adopted for
segregation between Transmission and Distribution, which has been the overall ratio
of transmission and distribution assets as per provisional transfer scheme notified
vide G.O. Ms. 100 dated 19-10-2010.
5.1.2 TANGEDCO submitted that segregation of fixed assets for FY 2010-11 is done based on:
a) During the year, additions and deductions up to 31-10-2010 for the transmission
assets at distribution circles (i.e. Plant and Machinery and Lines & Cables) a ratio of
55:45 is adopted for segregation between Transmission and Distribution, which has
been the overall ratio of transmission and distribution assets as per provisional
transfer scheme notified vide G.O. Ms. 100 dated 1910-2010.
b) The actual addition and deduction to the assets of transmission circles from
November 2010 to March 2011 are segregated based on the monthly accounts of
November 2010 to March 2011 of TANTRANSCO circles.
5.1.3 TANGEDCO submitted that segregation of fixed assets for FY 2011-12 and 2012-13 is
as follows:
a) The additions to assets are based on capital expenditure to be undertaken and its
proportion of completion in each financial year taking the past trend.
b) The additions to depreciation are based on the previous year proportion of
depreciation to fixed assets.

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5.2 Capital Expenditure and Capitalisation
5.2.1 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v) of the Tariff
Regulation under MYT framework specifies that the licensee shall get the capital
investment plan approved by the Commission before filing ARR and Application for
determination of Tariff. The TANGEDCO has not complied with this provision.
5.2.2 The TANGEDCO submitted the capital investment plan for 2010-11 to 2012-13 vide its
letter dated 19.8.2011 without capitalization schedule. This will be examined and further
action will be taken separately.
5.2.3 TANGEDCO in its Petition has submitted Power Plant wise Gross Fixed Assets for its
Own Generation Stations, which is as under:
Table 82: GFA submitted by TANGEDCO (in Rs Crore)
Stations
TANGEDCO
FY 11 FY 12 FY 13
ETPS 1069 1153 1859
NCTPS 2060 2222 3582
MTPS 1011 1091 1758
TTPS 1916 2066 3331
NCTPS II
MTPS II
Total Thermal 6056 6531 10530
BBGTPS 553 596 961
KGTPS 354 382 616
TGTPS 462 498 803
VGTPS 859 927 1494
Total Gas 2228 2403 3874
Erode 672 724 1168
Kadamparai 358 386 622
Kundah 952 1027 1656
Tirunelveli 347 374 604
Total Hydro 2329 2511 4049
Tirunelveli - Wind 143 155 249
Udumalpet - Wind 208 224 362
Total Wind 351 379 611
Total Generation 10964 11824 19064


166 | P a g e

5.2.4 TANGEDCO in its Petition has submitted Gross Fixed Assets and capitalisation for its
distribution function as under:


Table 83: Capitalisation submitted by TANGEDCO for Distribution function (in Rs Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Gross Block at the beginning of FY 7810.53 8407.54 9488.48
2 Gross Block at the end of FY 8407.54 9488.48 10596.10
3 Capitalisation as per Form 11 681.69 1080.94 1107.61

5.2.5 TANGEDCO in reply to the deficiency raised by the Commission has submitted
following capital expenditure:
Table 84: Capital Expenditure submitted by TANGEDCO (in Rs Crore)
Particulars FY 2010-11 FY 2011-12 FY 2012-13
GENERATION SCHEMES
HYDRO 21.87 48.85 63.85
THERMAL 55.75 96.78 270.08
GAS 54.37 89.13 64.25
WIND 1.16 0.00 0.00
SUB-TOTAL - GENERATION SCHEMES (A) 133.15 234.76 398.18
PROJECTS
A. Thermal :
NCTPS STAGE II 659.57 731.87 799.34
MTPP STAGE III 1447.38 872.25 1146.57
Ennore Annexe 0.51 10.00
Ennore SEZ TPS (Kattupalli) 1.86 10.00
TTPS Annexe (Stage - IV) 0.00 10.00
Ennore Replacement of ETPS 0.00 10.00
NCTPS Stage III 0.00 10.00
Udangudi Expansion 0.00 10.00

B. HYDRO :

BK BARRAGE II 96.97 43.93 0.00
BK BARRAGE III 161.02 49.92 15.24
PERIYAR VAIGAI SMALL HEP I 2.47 8.19 0.00

167 | P a g e

Particulars FY 2010-11 FY 2011-12 FY 2012-13
PERIYAR VAIGAI II 12.73 12.61 1.15
PERIYAR VAIGAI III 16.52 23.20 7.11
PERIYAR VAIGAI IV 11.23 17.77 2.35
PERIYAR VAIGAI V 0.00 12.50
PERIYAR VAIGAI VI 0.00 12.50
Bhavani Barrage - I HEP 41.29 11.86 20.50
Bhavani Barrage - II HEP 39.37 19.67 3.99
Kollimalai HEP 3.30 10.00
Kundah Pumped Storage 3.32 28.28
SUB-TOTAL PROJECTS (B) 2488.55 1800.26 2119.53
DISTRIBUTION
33 KV LINES 0.00 39.45 285.41
33 KV SUBSTATIONS 78.63 157.11 245.50
OTHER CONSTRUCTIONS SCHEMES 399.68 329.93 245.25
GENERAL IMPROVEMENT SCHEMES 399.32 365.23 244.24
APDRP works 1.57 0.00 0.00
Rural Electrification works 162.25 301.25 123.92
RGGVY 115.14 18.84 0.00
R-APDRP 27.85 32.84 110.00
Co-operative sugar mill generation 225.17 160.00 40.00
OTHERS - survey, investigation, computerisation, etc 214.15 1.40 11.54
SUB-TOTAL-Distribution ( C) 1623.76 1406.06 1305.86
SUB TOTAL (A+B+C=D) 4245.46 3441.08 3823.57
Joint Ventures
with NTPC 0.00 313.00 500.00
with NLC 0.00 0.00 200.00
Others 0.00 5.00 100.00
SUB-TOTAL (E)- Joint Ventures 0.00 318.00 800.00

TOTAL Outlay (F=D+E) 4245.46 3759.08 4623.57

Commissions View:
5.2.6 The Commission in its data deficiency sought for Capital Expenditure and Capitalisation
schedule along with its Cost Benefit Analysis. In response TANGEDCO submitted the
details. However on perusal of the same, the Commission noted that the data quality and
iteration that went through the Capitalisation schedule along with its GFA schedule
needed to be substantially improved.


168 | P a g e



5.2.7 TANGEDCO in reply dated 15-03-2012 to the deficiency raised by the Commission has
submitted Power Plant wise Gross Fixed Assets for its Own Generation Stations, which is
as under:
Table 85: Revised Closing GFA submitted by TANGEDCO (in Rs Crore)


5.2.8 In the submission of TANGEDCO, the Commission noted that the TANGEDCO has
shown capitalisation in Wind schemes and sought clarification for the same. During the
discussion with TANGEDCO in the meeting held in the Commissions Office on 14-03-
2012 to seek clarifications on discrepancies in the WIP statement, GFA schedule; and
Depreciation and Interest expenses, the TANGEDCO confirmed the following
observations of the Commission:

Stations
Approved
FY 11 FY 12 FY 13
ETPS 1062 1064 1089
NCTPS 2047 2083 2118
MTPS 1061 1080 1126
TTPS 1903 1976 2141
NCTPS II 4074
MTPS II 2810
Total Thermal 6073 6203 13357
BBGTPS 549 549 551
KGTPS 352 378 394
TGTPS 459 465 476
VGTPS 854 910 943
Total Gas 2213 2303 2363
Erode 668 1169 1871
Kadamparai 355 389 409
Kundah 943 978 996
Tirunelveli 414 450 541
Total Hydro 2380 2986 3818
Tirunelveli - Wind 18 18 18
Udumalpet - Wind 3 3 3
Total Wind 21 21 21
Total Generation 10686 11513 19559

169 | P a g e

5.2.8.1 Wind Generation Schemes: No capitalisation will be undertaken and it is by
mistake that it was shown separately. This capitalization is to be added to
Thermal Generation Schemes.
5.2.8.2 Capital expenditure shown under Joint Venture Schemes is in the form of Equity
infusion by TANGEDCO and hence, interest expenses on this head cannot be
allowed.
5.2.8.3 TANGEDCO was asked to confirm whether Capital Expenditure and
capitalisation shown under Cooperative Sugar Mills head would be treated as an
asset in the Fixed Asset Register of TANGEDCO. TANGEDCO confirmed this
vide their letter dated 15-03-2012.
5.2.8.4 Since details of Capital Expenditure plan and Capitalisation shown for
Distribution Schemes are not submitted along with Cost benefit Analysis,
TANGEDCO was asked to confirm that Capital Expenditure and capitalisation
shown under Distribution head would be treated as an asset in the Fixed Asset
Register of TANGEDCO. TANGEDCO confirmed this vide letter dated 15-03-
2012.
5.2.8.5 In the Depreciation schedule, under the Asset class Vehicles, depreciation is
beyond 90% for FY 2010-11 and FY 2011-12. Therefore, depreciation shall not
be allowed for this asset class for respective years for Generation and
Distribution Function.
5.2.8.6 TANGEDCO submitted that Wind assets claimed include substation assets and
submitted following segregation of Wind Assets:
Table 86: GFA pertaining to Wind-TANGEDCO Submission (In Rs Crore)
S. No Particulars
Installed Capacity
(MW)
Amount (Rs. Crore)
1 Wind Generating Stations
17.5 20.86
2
Wind Sub-stations (Capacity Rating at 110 kV
and above)

322
3 Total 342.86


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5.2.8.7 The Commission for the purpose of segregation of GFA among circles has use
pro-rata method, which is as under:

Table 87: GFA pertaining to Wind considered by the Commission (In Rs Crore)
S. No Particulars Installed Capacity (MW) Amount (Rs. Crore)
1 Udumalpet Wind Generation Circle 2.5 2.98
2 Tirunelveli Generation Circle 15 17.88
3 Wind Generating Stations-Total 17.5
20.86

5.2.9 Regulation 6 (7) (i) (a) of the TNERC Tariff Regulations, 2005 specifies the following:
A generation company or a licensee may make an application as per Appendix
I to these Regulations, for determination of provisional tariff in advance of the
anticipated date of completion of the project, based on the capital expenditure
actually incurred up to the date of making of the application or a date prior to
making of the application, duly audited and certified by the statutory auditors,
and the provisional tariff shall be charged from the date of commercial operation
of the respective units of the generation station or the line or sub-station of the
transmission system.
5.2.10 The Commission observed that there are number of new generating stations for which
TANGEDCO had neither sought prior approval of their capital investment plan nor
applied for determination of tariff in advance for the new generating stations. However,
the Commission is required to determine tariff for the new generating stations under
Regulation 43 and hence, the capital costs of these projects are also required to be
ascertained by the Commission. Hence, the Commission directs the TANGEDCO to file
the petitions based on TNERC Regulations, within 90 days of issuance of this Order.
5.2.11 The TANGEDCO plan requires further analysis and explanation from TANGEDCO
before according approval of cost proposed by TANGEDCO. Pending approval, the
Commission provisionally adopts the Capital Expenditure submitted by the petitioner.
5.2.12 Capital expenditure and capitalisation considered by the Commission is as under:


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Table 88: Capital Expenditure and Capitalisation of Assets for Generation and
Distribution (in Rs Crore)
Particulars Capital Expenditure Capitalisation
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
GENERATION SCHEMES
HYDRO 21.87 48.85 63.85 85.86 102.00 58.25
THERMAL 56.91 96.78 270.08 177.24 130.50 270.95
GAS 54.37 89.13 64.25 321.66 89.50 60.58
WIND 0.00 0.00 0.00 0.00 0.00 0.00
SUB-TOTAL (A) 133.15 234.76 398.18 584.76 322.0 389.78
PROJECTS
A. Thermal :
NCTPS STAGE II 659.57 731.87 799.34 0.00 0.00 2809.66
MTPP STAGE III 1447.38 872.25 1146.57 0.00 0.00 4073.77
Ennore Annexe 0.00 0.51 10.00 0.00 0.00 0.00
Ennore SEZ TPS (Kattupalli) 0.00 1.86 10.00 0.00 0.00 0.00
TTPS Annexe (Stage - IV) 0.00 0.00 10.00 0.00 0.00 0.00
Ennore Replacement of ETPS 0.00 0.00 10.00 0.00 0.00 0.00
NCTPS Stage III 0.00 0.00 10.00 0.00 0.00 0.00
Udangudi Expansion 0.00 0.00 10.00 0.00 0.00 0.00

B. HYDRO :

BK BARRAGE II 96.97 43.93 0.00 0.00 484.37 0.00
BK BARRAGE III 161.02 49.92 15.24 0.00 0.00 408.08
PERIYAR VAIGAI SMALL HEP I 2.47 8.19 0.00 10.91 20.15 0.00
PERIYAR VAIGAI II 12.73 12.61 1.15 10.20 0.00 18.72
PERIYAR VAIGAI III 16.52 23.20 7.11 18.61 0.00 34.80
PERIYAR VAIGAI IV 11.23 17.77 2.35 11.69 0.00 25.40
PERIYAR VAIGAI V 0.00 0.00 12.50 0.00 0.00 0.00
PERIYAR VAIGAI VI 0.00 0.00 12.50 0.00 0.00 0.00
Bhavani Barrage - I HEP 41.29 11.86 20.50 0.00 0.00 149.08
Bhavani Barrage - II HEP 39.37 19.67 3.99 0.00 0.00 137.30
Kollimalai HEP 0.00 3.30 10.00 0.00 0.00 0.00
Kundah Pumped Storage 0.00 3.32 28.28 0.00 0.00 0.00
SUB-TOTAL (B) 2488.55 1800.26 2119.53 51.41 504.52 7656.81
DISTRIBUTION
33 KV LINES 0.00 39.45 285.41 0.00 25.41 176.16
33 KV SUBSTATIONS 78.63 157.11 245.50 35.81 195.39 287.24

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Particulars Capital Expenditure Capitalisation
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
OTHER CONSTRUCTIONS
SCHEMES
399.68 329.93 245.25 167.78 433.98 457.56
GENERAL IMPROVEMENT
SCHEMES
399.32 365.23 244.24 215.83 454.22 466.25
APDRP works 1.57 0.00 0.00 4.55 23.41 0.00
Rural Electrification works 162.25 301.25 123.92 70.53 447.90 123.92
RGGVY 115.14 18.84 0.00 83.01 108.80 0.00
R-APDRP 27.85 32.84 110.00 0.27 0.00 0.00
Co-operative sugar mill generation 225.17 160.00 40.00 20.23 94.94 310.00
OTHERS - survey, investigation,
computerisation, etc
214.15 1.40 11.54 83.68 197.52 11.54
SUB-TOTAL (c) 1623.76 1406.06 1305.86 681.69 1981.57 1792.66
GRAND TOTAL (A to C) 4245.46 3441.08 3823.57 1317.86 2808.09 9839.25

5.2.13 Capital expenditure and capitalisation considered by the Commission for distribution
function of TANGEDCO is as under:
Table 89: GFA and Capitalisation of Assets as Approved by the Commission (in Rs Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Gross Block at the beginning of FY
7810.53 8407.54 9488.48
2
Gross Block at the end of FY
8407.54 9488.48 10596.10
3
Capex as per WIP Statement
1623.76 1406.06 1305.86
4
Capitalisation as per WIP Statement
681.69 1981.57 1792.66
5
Capitalisation as per Form 11
681.69 1080.94 1107.61

Note: TANGEDCO in the discussion with the Commission on 15.3.2012 accepted that the asset
capitalisation shown in form-11 of the Petition needs to be considered for purpose of the calculation of
Capital expenditure related heads in Aggregate Revenue Requirement.


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5.3 Interest on Loan Capital:
5.3.1 The Commission in the last Tariff Order considered the outstanding loan and interest at
the beginning of FY 2009-10. The Commission obtained the actual borrowings and
repayment during FY 2009-10 and revised the outstanding loans at the end of FY 2009-
10. The Commission accepted the Interest on Consumer Security Deposit as submitted by
TNEB in the Petition.
5.3.2 As regards interest on GPF, the Commission fixed the same after considering the salary
hike on implementation of wage agreement. The Commission projected the other
interests by considering an escalation of 4% over the actual in FY 2008-09. The
Commission did not consider the claim of Hydro Balancing Fund as the same cannot be
passed on to the Consumers.
5.3.3 The Commission further accepted the capitalisation of interest as submitted by TNEB and
calculated the net interest for all functions of TNEB from FY 2009-10 to FY 2012-13 and
then allocated the total interest on loan capital among different functions of TNEB on the
basis of Net Fixed Assets which is as under:
Table 90: Interest on Loan Capital as allowed by the Commission in last Tariff Order (Rs.
Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS 78.41 64.99 61.84
2 NCTPS 104.17 83.13 75.6
3 MTPS 45.85 36.06 32.19
4 TTPS 109.75 88.86 82.26
5 NCTPS-II 216.18 216.18
6 MTPS-II 182.3 182
I Total Thermal 338.18 671.52 650.37

1 BBGTPS 20.13 15.29 13.02
2 KGTPS 37.23 31.37 30.41
3 TGTPS 32.16 26.75 25.57
4 VGTPS 102.39 86.99 85.08
II Total Gas 191.91 160.4 154.08

1 Erode 86.23 141.79 119.2
2 Kadamparai 30.51 25.41 24.31
3 Kundah 108.16 91.59 89.27

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S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
4 Tirunelveli 42.13 34.13 32.08
III Total Hydro 267.03 292.92 264.86

1 Tirunelveli-Wind 15.21 12.8 12.39
2 Udumalpet-Wind 12.33 10.5 10.3
IV Total -Wind 27.54 23.3 22.69
Total Generation 824.66 1148.14 1091.98
Transmission 1023.39 1094.49 1158.59
Distribution 1428.07 1324.72 1475.21
Total 3276.11 3567.34 3725.79

5.3.4 TANGEDCO submitted the following basis of segregation of Loans between
TANGEDCO and TANTRANSCO:
a) REC and PFC loans are apportioned between TANGEDCO and TANTRANSCO as
per the provision Balance Sheet mentioned in the G.O. Ms. No. 100, dated 19-10-
2010.
b) Generic loans (i.e.) loans availed from Banks, TNPFC, LIC, HUDCO and funds
raised through Private placement of bonds are apportioned between TANGEDCO and
TANTRANSCO in the ratio of 40 : 60.
c) Due to non-revision of tariff, there is a huge accumulated loss and huge borrowing.
TANGEDCO has to repay the interest on loan and repayment of principal has been
considerably increased. In order to meet out the huge repayment of loan by
TANGEDCO, the borrowings have been increased to that extent.
d) Interests are being calculated at the average rate of interest for the previous year
outstanding balance and for the current year borrowing. Interests are being calculated
at the rate of 11.75% p.a. for six months for the FY 2011-12 and FY 2012-13 in
respect of REC, PFC, TNPFC, Commercial Bank Loans and other loans interest are
calculated on actual basis.
e) Interests are being calculated at the average rate of interest for the previous year
outstanding balance and for the current year borrowing interest are being calculated at
the rate of 12.00%, 10.00% p.a., 11.75% p.a. and 10.50% p.a. for six months for the
financial year 2012-13 in respect of TNEB Bonds, REC, PFC, TNPFC, and
Commercial Bank Loans. Interest on LIC loan and HUDCO are being worked at
actual basis.

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f) The erstwhile TNEB/ now TANGEDCOs entire programmed capital expenditures,
repayment of loan, and payment of interest and also part of the other revenue
expenses are to be met out through borrowed funds in view of the non-availability of
internal source of funds due to non-rationalization of tariff.

Rural Electrification Corporation Ltd.
g) TANGEDCO (then TNEB) has been availing loan from REC from the year 1970-
1971 onwards to implement the project system improvement and extension of
electricity for energisation of pumpsets under P : SI (Systems improvements)
category and SPA : PE pumpset energisation Category. Further REC has also
sanctioned loan for establishment of Power Projects. In addition to this, TANGEDCO
has also availed Short term loan for a period of one year to three years to meet Power
Purchase expenditure. The REC interest rate is applicable as on the date of
disbursement of loan and not on the date of the sanction of loan. The period of
repayment of principal is 13 years (including moratorium period of 3 years). The loan
drawl period is 3 years for the distribution scheme and will be extended up to one
year at the request of the borrower. Each and every reimbursement of claim on each
scheme loan is treated as separate loan since the rate of interest is different.
Power Finance Corporation Ltd.
h) Power Finance Corporation Ltd. is also extending financial assistance for specific
Transmission and Distribution Schemes and also power projects. In addition to this,
short term loan for a period of six months to one year has also been availed to meet
Power purchase.
HUDCO
i) HUDCO is providing financial assistance for a period of 15 years. The repayment of
loan is to be made in 56 quarterly installments. The present, rate of interest is 13%
p.a. floating. As and when the interest rate increases/ reduces, the same effect will be
reflected in the rate of interest.
Life Insurance Corporation of India:

j) TANGEDCO (then TNEB) has availed loan from Life Insurance Corporation of
India. The period of loan is 15 years. The repayment of loan is equal annual/semi
annual installments.

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Commercial Banks:
k) TANGEDCO is availing Medium term loans from commercial banks for the purpose
of meeting the capital expenditure and short term loan for meeting the mismatch of
the cash flow. The loans availed from the banks are being utilized for meeting power
purchase, payment commitments, repayment of principal, payment of interest and
other inevitable payments. The short term and medium term loans carry an interest
rate of more than 12.00% p.a.
5.3.5 TANGEDCO in its Petition has not discussed the loan amount and the interest on loan for
its generating stations. TANGEDCO has submitted the loan amount and the interest on
loan pertaining to its generation business in form-13 of each station annexed along with
the Petition. However in form-13, TANGEDCO has not submitted the details of the loan
raised from FY 2010-11 to FY 2012-13 for its Generating Function. The interest on loan
as claimed by TANGEDCO is tabulated below:
Table 91: Interest on loan (Rs. Crore) as claimed by TANGEDCO in the Petition for its
Generation Function
Stations
TANGEDCO
FY 11 FY 12 FY 13
ETPS 12 58 91
NCTPS 23 111 176
MTPS 11 54 87
TTPS 22 103 164
NCTPS II
MTPS II
Total Thermal 69 326 518
BBGTPS 6 30 47
Kuttalam 4 19 30
Kovilkalappal 5 25 40
Valuthur 10 46 74
Total Gas 25 120 191
Erode 8 36 57
Kadamparai 4 19 31
Kundah 11 51 81
Tirunelveli 4 16 22
Total Hydro 26 123 191
Tirunelveli - Wind 2 12 18
Udumalpet - Wind 2 8 12
Total Wind 4 20 30

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Stations
TANGEDCO
FY 11 FY 12 FY 13
Total Generation 124 588 930

5.3.6 TANGEDCO submitted the Interest on loan for Distribution Function from FY 2010-11
to FY 2012-13 which is tabulated below:
Table 92: Interest on Loan (Rs. Crore) for Distribution Business
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Interest on Loan 1651.35 3150.2 3354.59


Commissions View:
5.4 Diversion of Capital Funds for Revenue Expenditure:
5.4.1 In page no. 40 of Policy Notes-FY 2011-12, Energy Department, Government of Tamil
Nadu has noted that:
The Boards borrowings are being utilized to meet Capital Expenditure, Loan
repayments and managing revenue deficit
5.4.2 The Commission has observed in many places in this Order that there is a mix up
between the capital account and the revenue account. Equity as well as capital
borrowings have been diverted from time to time to meet the revenue expenses. Equity
being the owners investment, the Commission has taken a view that the return on equity
shall not be permitted if equity has been diverted for meeting revenue expenses. Further,
borrowings are also more than the investment shown for capital expenditure. This clearly
brings out the fact that capital borrowings have also been diverted for revenue
expenditure. This is also recognized by the policy paper which has been published in the
Government of Tamil Nadu Website.
5.4.3 The Regulations of the Commission are for normal situations and does not cover a
situation which is encountered now. Therefore, the Commission has to take a practical
view on this issue. The option available to the Commission is to disallow the interest
costs on the entire borrowings in excess of capital works which will be in line with the
Regulation but such a move would create a lot of confusion and may also affect the
borrowing ability of the TANGEDCO / TANTRANSCO. The proposal regarding

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revaluation of assets in the two Transfer Schemes already issued by the Government of
Tamil Nadu may address the balance sheet problems but will not generate additional cash
to repay the existing loans which were borrowed. Loans would be carried forward for
final settlement. The accumulated losses of some of Utilities is under consideration by
two committees constituted by the Government of India Viz., Shunglu Comiittee and
Chaturvedi Committee. Shunglu Committee has already submitted its report which is
available in the website of Planning Commission. The report of the Chaturvedi
Committee is not available in public domain yet. Under these circumstances,
Commission is allowing the interest on entire borrowing duly considerin the loans shown
in the Transfer Schemes and provisionally allows such interest, subject to final
adjustment when the audited accounts are made available. This is also further subject to
the actions taken by the appropriate authorities as well as the TANGEDCO /
TANTRANSCO with regard to handling of the past liabilities based on the outcome of
the above referred two reports and implementation thereof.
5.4.4 The Commission is of the opinion that rise in borrowing towards revenue expenditure is a
clear indication of deteriorating financial health of the Utility. Hence, the Commission
directs the Utility to file their Tariff Petition on a timely basis every year.
5.4.5 In the reply to query raised by the Commission about details of borrowings to meet
revenue expenditure, the TANGEDCO has cited its precarious financial position and
reiterated that it has no other option than to resort to borrowing to meet its daily revenue
expenditure, in absence of any tariff increase in past so many years.
5.4.6 The Commission further notes that Regulation 21 of TNERC Tariff Regulations, 2005
clearly provides for funding only to the extent of capitalisation of the asset added during
the year. However, considering the financial crisis that TANGEDCO is presently going
through, if only the interest expenditure is allowed to the extent of capital expenditure, it
may lead to the further difficulty for TANGEDCO to borrow funds from the market.
Even if TANGEDCO is able to raise funds, it may be at very high interest rates.
5.4.7 The Commission is of the opinion that interest expenses disallowed would only
contribute to postponement of the problem to be solved, which may not be in the interests
of any of the stakeholders.
5.4.8 During scrutiny of interest expenses, the Commission observed that interest expenses of
new thermal power stations have been apportioned to all the existing stations by

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TANGEDCO. The Commission sought clarification and asked TANGEDCO to resubmit
the Capital expenditure for its Generation function.
5.4.9 In reply to datagaps, TANGEDCO after incorporating the comments of the Commission
resubmitted its Interest expenses on 18-3-2012. Interest expenses approved by the
Commission are as under:
Table 93: Interest expenses approved by the Commission for Generation function (in Rs
Crore)
Stations
Commission
FY 11 FY 12 FY 13
ETPS
8 9 8
NCTPS
15 16 16
MTPS
8 9 9
TTPS
14 15 16
NCTPS II
0 0 174
MTPS II
0 0 293
Total Thermal
46 49 516
BBGTPS
4 4 4
Kuttalam
3 3 3
Kovilkalappal
3 4 4
Valuthur
4 7 7
Total Gas
15 18 18
Erode
5 5 9
Kadamparai
3 3 3
Kundah
7 8 8
Tirunelveli
2 3 4
Total Hydro
17 19 24
Tirunelveli - Wind
0 0 0
Udumalpet - Wind
0 0 0
Total Wind
0 0 0
Total Generation
78 86 558


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5.4.10 TANGEDCO has included the funding of equity for its Joint Ventures projects in the
Loan borrowing for the distribution function. The Commission is of the opinion that free
equity infused for Joint Venture projects will attract return on equity and since, these
Joint Ventures Projects come under the purview of CERC, the Commission for the
purpose of computing interest expenses has not considered the equity involved in these
projects.
5.4.11 The Commission based on revised submission by TANGEDCO on Wind Generation
Plants, notes that these wind assets have already lived their useful life and have
depreciated upto 90% of the asset value. Hence, the loan borrowing, if any towards these
assets would already be over. Hence, no interest expenses have been considered for Wind
Generation Plants.
5.4.12 The Commission has accepted the interest during construction submitted by
TANGEDCO.
5.4.13 Interest expenses approved by the Commission for distribution function are as under:
Table 94: Interest expenses approved by the Commission for Distribution function (in Rs
Crore)
Particulars
TANGEDCO Approved
FY 2010-
11
FY 2011-
12
FY 2012-
13
FY 2010-
11
FY 2011-
12
FY 2012-
13
Opening Loan balance 16471 24057 29954 16471 24057 29954
Addition in Loan 16628 15153 13510 16628 15153 13510
Repayment 9035 9256 4639 9035 9256 4639
Closing Loan Balance 24057 29954 38825 24057 29954 38825
Interest Expenses 1865 3364 3569 1865 3364 3569
IDC 214 214 214 214 214 214
Net Interest Expenses 1651 3150 3355 1651 3150 3355

5.5 Depreciation:
5.5.1 The Commission in the last Tariff Order allowed 3.31% as the rate of depreciation on
existing assets of TNEB based upon the annual statement of accounts of TNEB for FY
2008-09. 3.56% was the rate of depreciation allowed on new assets to be added by TNEB
from FY 2010-11 to FY 2012-13 based upon the weighted average rate of depreciation
arrived after excluding the cost of land. The Commission further allocated the approved
amount of depreciation among Generation, Transmission and Distribution function of

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TNEB. The depreciation allowed by the Commission for various Generating Stations of
TANGEDCO in last Tariff Order is tabulated below:
Table 95: Depreciation allowed by the Commission from FY 2010-11 to FY 2012-13 (Rs.
Crore)
Stations
Last Tariff Order
2010-11 2011-12 2012-13
ETPS 32 32 32
NCTPS 65 65 65
MTPS 33 33 33
TTPS 60 60 60
NCTPS II 128 200
MTPS II 87 122
Total Thermal 189 404 512
BBGTPS 18 18 18
Kuttalam 11 11 11
Kovilkalappal 12 12 12
Valuthur 26 26 26
Total Gas 68 68 68
Erode 22 35 37
Kadamparai 12 12 12
Kundah 30 30 30
Tirunelveli 10 11 11
Total Hydro 74 88 90
Tirunelveli -
Wind
5 5 5
Udumalpet -
Wind
3 3 3
Total Wind 8 8 8
Total
Generation
339 568 679
Transmission 268 311 352
Distribution 349 393 434
Total 956 1272 1464

5.5.2 TANGEDCO in its Petition has not discussed the depreciation and rates of depreciation
applied on the GFA for calculating depreciation for its generating stations in the Petition.
TANGEDCO has submitted the depreciation along with the Opening and Closing balance
of depreciation pertaining to its generation business in Form-11 of each station annexed
along with the Petition. TANGEDCO has also submitted the rates applied on various

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assets along with segregation of assets in Form-12. The Station-wise depreciation on the
GFA as claimed by TANGEDCO is tabulated below:
Table 96: Depreciation (Rs. Crore) as claimed by TANGEDCO in Form-11
Stations
TANGEDCO
2010-11 2011-12 2012-13
ETPS 34 36 39
NCTPS 66 69 75
MTPS 32 34 37
TTPS 61 64 70
NCTPS II
MTPS II
Total Thermal 193 204 220
BBGTPS 18 19 20
Kuttalam 11 12 13
Kovilkalappal 15 16 17
Valuthur 27 29 31
Total Gas 71 75 81
Erode 21 23 24
Kadamparai 11 12 13
Kundah 30 32 35
Tirunelveli 11 12 13
Total Hydro 74 78 85
Tirunelveli -
Wind
7 7 8
Udumalpet -
Wind
5 5 5
Total Wind 11 12 13
Total
Generation
349 369 398

5.5.3 TANGEDCO submitted the details of depreciation on account of assets pertaining to
Distribution Business in Form-11 annexed along with the Petition. The depreciation
claimed by TANGEDCO for its distribution business is tabulated as under:
Table 97: Depreciation for Distribution Function (Rs. Crore)
Particulars FY 2010-11 FY 2011-12 FY 2012-13
Depreciation during FY
278.26 307.43 351.61




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Commissions View:
5.5.4 The Commission based on revised submission by TANGEDCO on Wind Generation
Plants, notes that these wind assets have already lived their useful life and have
depreciated upto 90% of the asset value. Hence, no depreciation has been allowed on
these Assets.
5.5.5 The Commission also observed that vehicles asset class has been depreciated beyond
90% for distribution function for FY 2010-11 and FY 2011-12. Hence, the Commission
has not allowed depreciation for this asset class for above mentioned years.
5.5.6 The Commission has accepted revised submission of depreciation by TANGEDCO
except mentioned above, which is as under:
Table 98: Depreciation approved by the Commission for Generation function (Rs. Crore)
Stations
TNERC Approval
FY 11 FY 12 FY 13
ETPS 61 61 61
NCTPS 61 63 64
MTPS 38 40 40
TTPS 53 54 56
NCTPS II
MTPS II
Total Thermal 213 218 222
BBGTPS 30 30 30
Kuttalam 16 16 17
Kovilkalappal 20 21 21
Valuthur 27 43 46
Total Gas 93 110 114
Erode 14 14 25
Kadamparai 9 9 10
Kundah 22 22 23
Tirunelveli 7 9 10
Total Hydro 52 55 68
Tirunelveli - Wind 0 0 0
Udumalpet - Wind 0 0 0
Total Wind 0 0 0
Total Generation 358 383 404


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5.5.7 The Commission observed that average depreciation rates submitted by TANGEDCO for
its distribution function in its Petition was different from the rates specified in TNERC
Tariff Regulations. In response to queries raised by the Commission, TANGEDCO
resubmitted following depreciation rates to be applied for purpose of calculation of
depreciation. The submission of TANGEDCO has been accepted by the Commission, as
the same is in line with the Tariff Regulations which is as under:
Table 99: Depreciation rates for Distribution Function as submitted by TANGEDCO (Rs.
Crore)
Particulars
TANGEDCO
Petition Revised Submission
Land and Land Rights 0.00% 0.00%
Buildings 1.8% 1.80%
Hydraulic Works 1.8% 3.09%
Other Civil Works 1.8% 1.80%
Plant & Machinery 6% 3.60%
Lines& Cable Network 3.6% 2.61%
Vehicles 18% 18.00%
Furniture 6% 6.00%
Office Equipment 6% 6.00%

5.5.8 The Commission also observed that vehicles asset class has been depreciated beyond
90% and no proper justification was provided to explain the same. Hence, the
Commission has not allowed depreciation for this asset class for above mentioned years.
5.5.9 Depreciation approved by the Commission for Distribution function is as under:
Table 100: Depreciation for Distribution Function approved by the Commission (Rs.
Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Gross Block at the beginning of FY 7810.53 8407.54 9488.48
2 Gross Block at the end of FY 8407.54 9488.48 10596.10
3 Depreciation submitted by
TANGEDCO
278.26 307.43 351.61
4 Depreciation approved by the
Commission
229.01 254.05 287.05


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5.6 Return on Equity:
5.6.1 The Commission in the last Tariff Order considered Rs. 100 Crore as the equity addition
each year from FY 2010-11 to FY 2012-13 based upon the actual equity infused by the
Government of Tamil Nadu in FY 2009-10. The Commission further applied rate of 14%
in accordance with Regulation-22 of TNERC Tariff Regulations, 2005 on the closing
base of equity allowed from FY 2010-11 to FY 2012-13 in the previous Tariff Order. The
Commission allocated the total Return on Equity calculated for TNEB among
Generation, Transmission and Distribution Function in the ratio of GFA allowed to the
various Generating Stations, Transmission and Distribution Function of TNEB in the last
Tariff Order. The Return on Equity as calculated by the Commission from FY 2010-11 to
FY 2012-13 is tabulated below:
Table 101: Return on Equity allowed by the Commission in last Tariff Order (Rs. Crore)
Stations
Last Tariff Order
FY 11 FY 12 FY 13
ETPS 12 8 8
NCTPS 24 17 17
MTPS 12 8 8
TTPS 22 16 15
NCTPS II 52 52
MTPS II 32 32
Total Thermal 68 134 133
BBGTPS 7 5 5
Kuttalam 4 3 3
Kovilkalappal 4 3 3
Valuthur 10 7 7
Total Gas 25 18 18
Erode 9 10 10
Kadamparai 4 3 3
Kundah 11 8 8
Tirunelveli 4 3 3
Total Hydro 28 24 23
Tirunelveli -
Wind
2 1 1
Udumalpet -
Wind
1 1 1
Total Wind 3 2 2
Total
Generation
124 177 176
Transmission 102 89 95

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Stations
Last Tariff Order
FY 11 FY 12 FY 13
Distribution 134 108 117
Total 360 374 388

5.6.2 TANGEDCO in its Petition has not discussed the equity base and rate applied on the
equity base for calculating Return on Equity for its generating stations. TANGEDCO has
submitted the closing balance of equity pertaining to its generation business along with
the Return on Equity from FY 2009-10 to FY 2012-13 in Form-11 of each station
annexed along with the Petition. The Station-wise Return on Equity as claimed by
TANGEDCO is tabulated below:
Table 102: Return on Equity (Rs. Crore) claimed by TANGEDCO
Stations
TANGEDCO Petition
FY 11 FY 12 FY 13
ETPS 19 24 36
NCTPS 37 47 70
MTPS 18 23 34
TTPS 35 43 65
NCTPS II
MTPS II
Total Thermal 110 137 207
BBGTPS 10 12 19
Kuttalam 6 8 12
Kovilkalappal 8 10 16
Valuthur 16 19 29
Total Gas 41 50 76
Erode 12 15 23
Kadamparai 7 8 12
Kundah 17 22 32
Tirunelveli 6 8 12
Total Hydro 42 53 79
Tirunelveli -
Wind
4 5 7
Udumalpet -
Wind
3 3 5
Total Wind 6 8 12
Total
Generation
199 248 374


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5.6.3 TANGEDCO submitted that it has calculated the equity pertaining to Distribution
Business on the basis of Gross Fixed Assets. TANGEDCO has further considered rate of
14% to calculate Return on Equity. The Return on Equity as claimed by TANGEDCO in
the petition from FY 2009-10 to FY 2012-13 is tabulated below:
Table 103: Return on Equity from FY 2010-11 to FY 2012-13 for Distribution Business of
TANGEDCO (Rs Crore)
Particulars FY 2010-11 FY 2011-12 FY 2012-13
Equity
1091.85 1421.39 1484.90
Return on Equity
152.86 199.00 207.89


Commissions View:
5.6.4 The Commission has discussed return on equity for its own generating station in Chapter-
6.
5.6.5 Regulation 21 of TNERC Tariff Regulations states as under:
21. Debt-Equity Ratio
For the purpose of determination of tariff, debt-equity ratio as on the date of
commercial operation of Generating Station and transmission projects, sub-station,
distribution lines or capacity expanded after the notification of these Regulations
shall be 70:30. Where equity employed is more than 30% the amount of equity shall
be limited to 30% and the balance amount shall be considered as loans, advanced at
the weighted average rate of interest and for weighted average tenor of the long term
debt component of the investment.
Provided that in case of a Generating Company or other licensees, where actual
equity employed is less than 30%, the actual debt and equity shall be considered for
determination of return on equity in tariff computation. Emphasis Supplied
5.6.6 The Commission observed that the TANGEDCO has computed Return on Equity on the
closing equity. The Commission is of the opinion that for equity infused during the year,
the return should be on pro-rata basis, based on commissioning date of assets. However,
it is difficult to track asset wise equity infusion based on commissioning dates. Therefore,
the average of opening and closing equity has to be considered for computation of Return
on Equity.


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Table 104: Funding of Capitalisation (in Rs Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 Capitalisation as per WIP Statement 682 1982 1793
2 Capitalisation as per Form 11 682 1081 1108
3 Loan Borrowing during the year 16628 15153 13510

5.6.7 It is clear from the above table that the equity infused, if any, is utilised for revenue
expenditure, since entire capitalisation requirement is met through loan borrowings. The
Commission is of the view that equity if infused as a part of capitalisation can only attract
return on Equity. Hence, the Commission has disallowed return on equity as claimed for
Distribution function of TANGEDCO.

5.7 Operation and Maintenance Expenses- Distribution:
5.7.1 The Operation and Maintenance Expenses comprises of the following:
a. Repair and Maintenance Expenses
b. Employee Expenses
c. Administration and Generation Expenses
TANGEDCOs Submission: Employee Expenses- Distribution
5.7.2 TANGEDCO in its Petition has projected employee costs by considering the employee
strength and salary profile of the employees. While estimating the costs under this head,
the average cost for previous 5 years and actual trend in the year 2009-10 have been
considered. On an average, 4% hike is proposed for most of the account heads in the
current year 2011-12 & for the ensuing year 2012-13.
5.7.3 Terminal benefits mainly include Gratuity & Commuted pension paid to the retiring
employees. TANGEDCO submitted that Terminal benefits have been growing over the
past 5 years due to higher number of retiring personnel. Thus terminal benefits expenses
are estimated to show an increasing trend over the years.
5.7.4 TANGEDCO submitted that it incurs expenses towards terminal benefits in the form of
Pension and Gratuity. It creates a provision of 3.742% of the Basic Salary, Grade pay and
Dearness Allowance during every financial year as reserve. TANGEDCO further
submitted that the reserve so created is insufficient to meet the actual expenditure on

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pension. Hence, it has assessed the actual commitment on account of pension and booked
the same in the employees cost, instead of charging to the pension reserve account.
A&G Expenses- Distribution
5.7.5 Administration expenses mainly comprises of rent, telephone charges, Legal &
professional charges, conveyance and travelling, Vehicle related expenses, etc.
5.7.6 While estimating the costs under Administration & General expenses , the average cost
for previous 5 years and actual trend in the year 2009-10 have been taken into account.
On an average, 4% hike is proposed for most of the expenses in the current year 2011-12
and for the ensuing year 2012-13.
R&M Expenses- Distribution
5.7.7 Repairs and maintenance (R&M) expenses are routine in nature and being incurred in all
the wings viz., Distribution, Generation. Though the quantum of expenditure in
Generation stations are more, there are certain portions of Repairs & Maintenance
expenses incurred in Distribution network i.e. on Transformers, lines & cables, office
equipments, etc., in order to maintain the uninterrupted and quality power supply.
5.7.8 TANGEDCO has submitted that it has estimated the R&M expenses for the current
financial year 2011-12 & ensuing financial year 2012-13. based on the value of Gross
Fixed Assets of the Distribution wing.
5.7.9 The O&M expenses as submitted by TANGEDCO for its Distribution function are as
under:
Table 105: O&M Expenses- Distribution- Past Trend (in Rs Crore)
S.No.

Details

Actuals for previous 5 years Average
of 5
years
2005-06 2006-07 2007-08 2008-09 2009-10
1 Net R&M Expenses 23.43 29.87 29.95 32.46 34.78 30.10
2 Net Employees Cost 1170.91 1363.51 1497.79 1864.81 2122.35 1603.87
3 Net A&G Expenses 57.53 64.12 81.46 69.65 69.76 68.51
4 Total O&M expenses 1251.87 1457.51 1609.20 1966.92 2226.89 1702.48




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Table 106: O&M Expenses- TANGEDCO Submission (in Rs Crore)
S.No.

Details

Average
of 5
years
TANGEDCO Submission in
Last Tariff Order
Petition
FY
2010-11
FY
2011-12
FY
2012-13
FY
2010-11
FY
2011-12
FY
2012-13
1 Net R&M Expenses 30.10 32.74 34.05 35.41 41.36 43.01 44.73
2 Net Employees Cost 1603.87 2761.59 2964.93 3179.06 2525.15 2626.16 2731.21
3 Net A&G Expenses 68.51 129.07 131.32 141.58 56.55 58.81 61.17
4 Total O&M expenses 1702.48 2923.40 3130.30 3356.05 2623.06 2727.99 2837.11

Commissions View:
5.7.10 O&M expenses pertaining to Own Generating Station has been discussed in Chapter-6
5.7.11 The Commission has been guided by Regulation-25 of TNERC Tariff Regulations while
determining Operation and Maintenance Expenses. Regulation-25 of TNERC Tariff
Regulations states as under:
25. Operation and Maintenance Expenses
1. The operation and maintenance expenses shall be derived on the basis of actual
operation and maintenance expenses for the past five years previous to current year
based on the audited Annual Accounts excluding abnormal operation and
maintenance expenses, if any, after prudence check by the Commission. The
Commission may, if considered necessary engage Consultant / Auditors in the
process of prudence check for correctness.
2. The average of such normative operation and maintenance expenses after prudence
check shall be escalated at the rate of 4% per annum to arrive at operation and
maintenance expenses for current year i.e. base year and ensuing year.
3. The base operation and maintenance expenses so determined shall be escalated
further at the rate of 4% per annum to arrive at permissible operation and
maintenance expenses for the relevant years of tariff period.

5.7.12 The Commission observed that TANGEDCO has submitted component-wise O&M
Expenses for previous 6 years, i.e., FY 2005-06 to FY 2010-11. The Commission also
observed that employee R&M and A&G Expense are within the limit approved by the
Commission in its last Tariff Order and also the projection of FY 2011-12 and FY 2012-
13 is consistent with Regulation 25 of TNERC Tariff Regulations. Hence, the

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Commission has approved the Employee expenses, R&M expenses and A&G expenses
as sought by the TANGEDCO for its Distribution function.
5.7.13 The summary of O&M expenses approved by the Commission is as under:
Table 107: O&M Expenses (Distribution) approved by the Commission (in Rs Crore)
S.No.

Details

Petition Approved
FY
2010-11
FY
2011-12
FY
2012-13
FY 2010-
11
FY 2011-
12
FY 2012-
13
1 Net R&M Expenses 41.36 43.01 44.73 41.36 43.01 44.73
2 Net Employees Cost 2525.15 2626.16 2731.21 2525.15 2626.16 2731.21
3 Net A&G Expenses 56.55 58.81 61.17 56.55 58.81 61.17
4 Total O&M expenses 2623.06 2727.99 2837.11 2623.06 2727.99 2837.11

5.8 Other debits- Distribution
5.8.1 The Commission in the last Tariff Order approved the amount claimed on account of
other debits except Hydro Balancing Funds as the Commission projected the generation
from Hydro Power Station by considering the Capacity Utilisation Factor of 25%. The
Commission reduced the capitalization in the same ratio as was submitted by TNEB in
the Petition. The other debits as approved by the Commission are tabulated below:
Table 108: Other Debits as in Previous Tariff Order (Rs. Crore)
Particulars FY 2010-11 FY 2011-12 FY 2012-13
Other Debits
9.56 7.31 7.46

5.8.2 TANGEDCO in its present Petition submitted that the expenses like material cost
variance, bad and doubtful debts, extraordinary expenses etc. are accounted under this
head. Out of this material cost variance and miscellaneous losses have been allocated to
all the three functions and the remaining functions are allocated to Distribution Business.
The expenses on account of other debits as claimed by TANGEDCO are tabulated below:

Table 109: Other Debits (Distribution)- TANGEDCO submission (Rs. Crore)
S.
No.
Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Research & Development
expenses
0.11 0.11 0.11

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S.
No.
Particulars FY 2010-11 FY 2011-12 FY 2012-13
2
Bad & Doubtful debts
written off
26.38 26.91 27.45
3
Miscellaneous losses and
written off/provided for
2.30 2.34 2.39
4 Material cost variance 0.46 0.47 0.48
5 Sundry expenses 0 0 0
6 Extra ordinary debits 0.11 0.11 0.11
Total 29.36 29.95 30.55
Less: Capitalisation 1.34 1.37 1.40
Net expenses 28.02 28.58 29.15

Commissions View:
5.8.3 Regulation 29 of TNERC Tariff Regulations states as under:
29. Bad and Doubtful Debt
The Commission may consider and allow a provision upto 0.25% of receivables for
writing off of bad and doubtful debts. The licensee or Generating Company shall write off
the Bad and Doubtful debts as per the procedure laid down by them.
5.8.4 The Commission observed that provision of writing off bad and doubtful debt as
submitted by TANGEDCO is within the permissible limit of 0.25% of receivable from
sale of power at existing tariff. Hence, the Commission has approved the same.
5.8.5 The Commission is also of the opinion that all other expense subheads under Other
debits are also within reasonable limits. Hence, the Commission has approved the same.
Table 110: Other Debits (Distribution) - TANGEDCO submission (Rs. Crore)
Petition Approved
S.
No.
Particulars FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
1
Research &
Development
expenses
0.11 0.11 0.11 0.11 0.11 0.11
2
Bad & Doubtful
debts written
off
26.38 26.91 27.45 26.38 26.91 27.45
3
Miscellaneous
losses and
written
off/provided for
2.30 2.34 2.39 2.30 2.34 2.39
4 Material cost 0.46 0.47 0.48 0.46 0.47 0.48

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Petition Approved
S.
No.
Particulars FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
variance
5
Sundry
expenses
0 0 0 0 0 0
6
Extra ordinary
debits
0.11 0.11 0.11 0.11 0.11 0.11
Total 29.36 29.95 30.55 29.36 29.95 30.55

Less:
Capitalisation
1.34 1.37 1.40 1.34 1.37 1.40
Net expenses 28.02 28.58 29.15 28.02 28.58 29.15

5.9 Prior Period Debit/(Credit) charges:
5.9.1 TANGEDCO in its Petition submitted that the expenses pertaining to prior period like
short provision of power purchase, Material related expenses, employee cost, Interest and
finance charges and Other Charges are accounted under this head. The expenses on
account of other debits as claimed by TANGEDCO are tabulated below:
Table 111: Prior Period Debit/(Credit) charges (Distribution)- TANGEDCO submission
(Rs. Crore)
S.
No.
Particulars 2010-11 2011-12 2012-13
1
Income relating to previous
year
348.46 0.00 0.00
2 Prior Period expenses /losses
a
Short provision for power
purchase 1003.40 236.29
0.00
b Material related expenses 0.01
c Employees cost
67.66

d Interest & Finance charges 2.06

e Other charges
7.17

Total 1080.30 236.29 0.00
Net prior period/credit 731.85 236.29 0.00


Commissions View:
5.9.2 The Commission observed that debits and credits pertaining to prior period for FY 2010-
11 actually pertains to FY 2009-10 and is of the opinion that prior period charges should
be addressed in the financial restructuring plan by TANGEDCO. The Commission is also
allowing entire expenditure for Power purchase, employee cost, Interest and finance

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charges, etc, based on prudence check. Hence, the Commission is of the opinion that
allowing these expenses again under this head would be a double accounting of these
expenses. Hence, the Commission is not allowing expenses as claimed by TANGEDCO
under his head for FY 2010-11 and FY 2011-12.
5.9.3 If there is any variation between various expense heads approved by the Commission and
actual expenses, TANGEDCO can approach the Commission with appropriate
justification for truing up based on Audited Accounts and the Commission would revisit
the expenses based on prudence check.
5.10 Demand Side Management
5.10.1 The Commission in its previous Tariff Order had provisionally allowed Rs.10 Crores in
the ARR for the purpose of carrying out the activities of Energy Conservation and
Demand Side Management (DSM).
5.10.2 However, the TANGEDCO in its Petition has not claimed any expenses towards DSM
for the Control Period.
5.10.3 The Commission is of the opinion that since FY 2010-11 and FY 2011-12 are already
over and there is no expense claimed towards DSM by TANGEDCO, the Commission is
not allowing the same for above mentioned period. However, the Commission retains Rs
10 Crore approval for FY 2012-13.
5.11 Summary of fixed Cost approved for Distribution function
Table 112: Summary of Fixed Cost Distribution Function approved by the Commission
(Rs. Crore)

Particulars
Last Tariff Order Petition Approved
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
Operation and Maintenance
Expenses 2923 3130 3356 2623 2728 2837 2623 2728 2837
Depreciation
349 393 434 278 307 352 229 254 287
Interest on Long term loan
1428 1325 1475 1651 3150 3355 1651 3150 3355
Other Debits & extra ordinary
items 10 7 7 28 29 29 28 29 29
Prior Period Debit/(Credit)
Charges 0 0 0 732 236 0 0 0 0
Reasonable Return / Return on
134 108 117 153 199 208 0 0 0

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Particulars
Last Tariff Order Petition Approved
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
Equity
Demand Side Management
10 10 10 0 0 0 0 0 10
Total 4854 4973 5399 5465 6649 6780 4531 6161 6518





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6 Expenses on account of Generation

In this Section, the Commission in accordance with TNERC (Terms and Conditions for
determination of Tariff) Regulations, 2005 has analysed the expenses on account of Generation
business of TANGEDCO from FY 2010-11 to FY 2012-13 with reference to the Tariff Order
dated July 31, 2010.
In respect of components of Tariff for Generating Stations, Regulation-36 of TNERC Tariff
Regulations, 2005 states as under:
36. Components of Tariff
1. The tariff for sale of power by the Generating Companies shall be of two part namely
the Fixed Charges (recovery of annual capacity charges) and variable (energy)
charges.
2. The Fixed (annual capacity) charges shall consist of the following elements:
a. Interest on Loan Capital;
b. Depreciation
c. Return on Equity;
d. Operation and Maintenance expenses; and
e. Interest on Working Capital:
3. The energy (variable) charges shall cover fuel cost.

Therefore the cost for Thermal Power Stations comprises of two components, i.e., Fixed Cost
and Variable Cost. This Section has been organised in the following manner:
a. Part-I: Fixed Cost: Expenses on account of various expenses of fixed cost for all generating
stations have been discussed.
b. Part-II: Variable Cost: Variable Cost in respect of various Thermal Power Stations, Gas
Turbine Power Stations and Primary energy charges of Hydro Generating Stations have
been discussed.
Part-I: Fixed Cost:
6.1.1 In absence of segregation of expenses, the Commission in the Previous Tariff Order
allocated the expenses on account of various elements of fixed cost as detailed in
Regulation-37 of TNERC Tariff Regulations, 2005 among Generation, Transmission and
Distribution function on the basis of certain assumptions. For the purpose of

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determination of GFA for each Generating station, Transmission Function and
Distribution Function, the Commission referred to the balance sheet of the generating
stations, Audited Accounts for FY 2007-08 and preliminary accounts for FY 2008-09.
6.1.2 TANGEDCO in its Petition has not discussed the fixed cost of various Thermal Power
Stations. However in the formats attached along with the Petition, TANGEDCO has
submitted the expenses on account of various heads of fixed cost from FY 2010-11 to FY
2012-13.
6.1.3 The fixed cost mainly comprises of the following elements:
a. Interest on Loan Capital
b. Depreciation
c. Return on Equity
d. Operation and Maintenance Expenses
e. Interest on Working Capital
6.1.4 In accordance with Order No.3 dated 15-05-2006, the Commission has determined a
tariff of Rs. 2.75 / unit for the wind power projects commissioned, and to be
commissioned based on agreements executed prior to 15-05-2006. Therefore the
Commission has not calculated the fixed cost for Wind Power Projects.
6.1.5 The Commission has discussed all the components of fixed cost except Return on Equity
and Operation and Maintenance expenses pertaining to Generation function of
TANGEDCO in detail in the Chapter of expenditure. The Commission has provided the
Station-wise break-up of GFA, Depreciation and Interest on Loan in the chapter of
Capital expenditure. Return on Equity and Operation and Maintenance expenses in
respect of each Generating Station have been explained below:
Return on Equity:
6.1.6 The Commission in the Previous Tariff Order considered Rs. 100 Crore as the equity
addition each year from FY 2010-11 to FY 2012-13 based upon the actual equity infused
by the Government of Tamil Nadu in FY 2009-10. The Commission further applied rate
of 14% in accordance with Regulation-22 of TNERC Tariff Regulations, 2005 on the
closing base of equity allowed from FY 2010-11 to FY 2012-13 in the previous Tariff
Order. The Commission allocated the total Return on Equity calculated for TNEB among
Generation, Transmission and Distribution Function in the ratio of GFA allowed to the
various Generating Stations, Transmission and Distribution Function of TNEB in the

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Previous Tariff Order. The Return on Equity as calculated by the Commission from FY
2010-11 to FY 2012-13 in the previous Tariff Order is tabulated below:
Table 113: Return on Equity allowed by the Commission in Previous Tariff Order
(Rs. Crore)
Stations
Previous Tariff Order
FY 11 FY 12 FY 13
ETPS 12 8 8
NCTPS 24 17 17
MTPS 12 8 8
TTPS 22 16 15
NCTPS II 52 52
MTPS II 32 32
Total Thermal 68 134 133
BBGTPS 7 5 5
Kuttalam 4 3 3
Kovilkalappal 4 3 3
Valuthur 10 7 7
Total Gas 25 18 18
Erode 9 10 10
Kadamparai 4 3 3
Kundah 11 8 8
Tirunelveli 4 3 3
Total Hydro 28 24 23
Tirunelveli -
Wind
2 1 1
Udumalpet -
Wind
1 1 1
Total Wind 3 2 2
Total
Generation
124 178 176

6.1.7 TANGEDCO in its Petition has not discussed the equity base and rate applied on the
equity base for calculating Return on Equity for its generating stations in the Petition.
TANGEDCO has submitted the closing balance of equity pertaining to its generation
business along with the Return on Equity from FY 2009-10 to FY 2012-13 in Form-11 of
each station attached along with the Petition. The Station-wise Return on Equity as
claimed by TANGEDCO is tabulated below:



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Table 114: Return on Equity claimed by TANGEDCO
(Rs. Crore)
Stations
TANGEDCO Petition
FY 11 FY 12 FY 13
ETPS 19 24 36
NCTPS 37 47 70
MTPS 18 23 34
TTPS 35 43 65
NCTPS II
MTPS II
Total Thermal 110 137 207
BBGTPS 10 12 19
Kuttalam 6 8 12
Kovilkalappal 8 10 16
Valuthur 16 19 29
Total Gas 41 50 76
Erode 12 15 23
Kadamparai 7 8 12
Kundah 17 22 32
Tirunelveli 6 8 12
Total Hydro 42 53 79
Tirunelveli -
Wind
4 5 7
Udumalpet -
Wind
3 3 5
Total Wind 6 8 12
Total
Generation
199 248 374

Commissions View:
6.1.8 The Commission has been guided by Regulation-22 of TNERC Tariff Regulations, 2005
while calculating Return on Equity on the equity base of TANGEDCO from FY 2010-11
to FY 2012-13. Regulation-22 of TNERC Tariff Regulations, 2005 states as under:

22. Return on Equity
Return on equity shall be computed on the equity base determined in accordance
with Regulation 21 @14% per annum. The return shall be allowed post tax.


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6.1.9 TANGEDCO in reply to data gaps revised the equity base for its various generating
stations and Return on Equity from FY 2010-11 to FY 2012-13 which is tabulated below:
Table 115: Equity base as submitted by TANGEDCO in Revised submission
(Rs. Crore)
Stations FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14
ETPS 84 145 171 240
NCTPS 184 272 329 470
MTPS 92 137 171 244
TTPS 169 256 306 446
NCTPS II
MTPS II
Total Thermal 528 809 977 1400
BBGTPS 51 75 88 124
Kuttalam 32 48 57 85
TGTPS 35 62 74 105
Valuthur 49 74 137 205
Total Gas 167 259 356 520
Erode 62 91 107 264
Kadamparai 32 48 57 88
Kundah 85 129 152 222
Tirunelveli 24 41 67 102
Total Hydro 203 309 384 675
Tirunelveli - Wind 19 19 19 19
Udumalpet - Wind 10 10 10 10
Total Wind 30 30 30 30
Total Generation 928 1406 1746 2624

Table 116: Return on Equity Revised Submission of TANGEDCO
(Rs. Crore)
Stations
Revised Submission
FY 11 FY 12 FY 13
ETPS
20 24 34
NCTPS
38 46 66
MTPS
19 24 34
TTPS
36 43 62
NCTPS II

MTPS II

Total Thermal
113 137 196

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Stations
Revised Submission
FY 11 FY 12 FY 13
BBGTPS
11 12 17
Kuttalam
7 8 12
TGTPS
9 10 15
Valuthur
10 19 29
Total Gas
37 50 73
Erode
13 15 37
Kadamparai
7 8 12
Kundah
18 21 31
Tirunelveli
6 9 14
Total Hydro
44 54 95
Tirunelveli - Wind
4 5 7
Udumalpet - Wind
3 3 4
Total Wind
7 8 11
Total Generation
201
250 375

6.1.10 The Commission observed that TANGEDCO has submitted substantial increase in equity
base each year from FY 2010-11 to FY 2012-13. The Commission is of the view that
equity addition can be allowed in a Financial Year only if there is additional
capitalisation during that particular year. Regulation-19 of TNERC Tariff Regulations,
2005 states as under:

19. Additional Capitalization
1. The capital expenditure within the original scope of work actually incurred in
respect of the following items after the date of commencement of operation and
upto the cut off date may be admitted by the Commission, subject to prudence
check.
i. Deferred liabilities
ii. Works deferred for execution
iii. Procurement of initial spares subject to the ceiling specified in Regulation
18.5.
iv. Liabilities to meet award of arbitration or for compliance of the order or
decree of a court.


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v. On account of change of law
vi. Any additional works / services which have become necessary for efficient
and successful operation of the Generating Station, but not included in the
original project cost.
2. Any expenditure on minor items / assets like normal tools and tackles, personal
computers, furniture, air conditioners, etc. bought after the cut off date shall not
be considered for additional capitalisation for determination of tariff.
3. The impact of additional capitalisation in tariff revision may be considered by the
Commission twice in a tariff period, including revision of tariff after the cut off
date.

6.1.11 TANGEDCO has not taken approval from the Commission for additional capitalisation
from FY 2010-11 to FY 2012-13. Therefore the Commission in this Order is
provisionally considering the revised submission of TANGEDCO for the purpose of
calculation of Return on Equity.
6.1.12 The Commission has calculated the Return on Equity on average of Opening and Closing
balance of equity base from FY 2010-11 to FY 2012-13 as submitted by TANGEDCO in
its revised submission. The Commission has assumed that the equity infusion during the
respective years will be at the mid of the year. The Commission has further applied rate
of 14% in accordance with Regulation-22 of TNERC Tariff Regulations, 2005 for
calculating Return on Equity. The Return on equity calculated by the Commission from
FY 2010-11 to FY 2012-13 is tabulated below:
Table 117: Return on Equity from FY 2010-11 to FY 2012-13
(Rs. Crore)
Stations
Previous Tariff
Order
TANGEDCO
Petition
TANGEDCO
Revised
Submission
Commission
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
ETPS 12 8 8 19 24 36 20 24 34 16 22 29
NCTPS 24 17 17 37 47 70 38 46 66 32 42 56
MTPS 12 8 8 18 23 34 19 24 34 16 22 29
TTPS 22 16 15 35 43 65 36 43 62 30 39 53
NCTPS II 52 52
MTPS II 32 32
Total 70 134 133 110 137 207 113 137 196 94 125 166

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Stations
Previous Tariff
Order
TANGEDCO
Petition
TANGEDCO
Revised
Submission
Commission
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
Thermal
BBGTPS 7 5 5 10 12 19 11 12 17 9 11 15
Kuttalam 4 3 3 6 8 12 7 8 12 6 7 10
Kovilkalappal 4 3 3 8 10 16 9 10 15 7 9 13
Valuthur 10 7 7 16 19 29 10 19 29 9 15 24
Total Gas 25 18 18 41 50 76 37 50 73 30 43 61
Erode 9 10 10 12 15 23 13 15 37 11 14 26
Kadamparai 4 3 3 7 8 12 7 8 12 6 7 10
Kundah 11 8 8 17 22 32 18 21 31 15 20 26
Tirunelveli 4 3 3 6 8 12 6 9 14 5 8 12
Total Hydro 28 24 23 42 53 79 44 54 95 36 48 74
Tirunelveli -
Wind
2 1 1 4 5 7 4 5 7 0 0 0
Udumalpet -
Wind
1 1 1 3 3 5 3 3 4 0 0 0
Total Wind 3 2 2 6 8 12 7 8 11 0 0 0
Total
Generation
124 177 176 199 248 374 201 250 375 159 216 301
6.1.13 The Commission directs TANGEDCO to submit separate Petition for approval of
additional capitalisation along with all details within three months of the date of issuance
of this Order.
Operation and Maintenance Expenses:
6.1.14 The Operation and Maintenance Expenses comprises of the following:
a. Repair and Maintenance Expenses
b. Employee Expenses
c. Administration and General Expenses
6.1.15 In the Previous Tariff Order based upon the detailed scrutiny and additional information
submitted by TNEB, the Commission approved the following O&M Expenses from FY
2010-11 to FY 2012-13:



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Table 118: O&M Expenses approved in the Previous Tariff Order
(Rs. Crore)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1
Net Repair &
Maintenance Expenses
237.67 247.23 257.12
2
Net Employees Cost
3577.98 3841.46 4119.05
3
Net Admn. & General
Expneses
252.8 257.82 272.15
4
Total Operation and
Maintenance expenses
4068.45 4346.51 4648.32

6.1.16 The Commission further allocated the O&M Expenses among Generation, Transmission
and Distribution Functions. The O&M Expenses as approved by the Commission from
FY 2010-11 to FY 2012-13 in its Previous Tariff Order is tabulated below:
Table 119: O&M Expenses (excluding Operating Charges) - Station-wise
(Rs. Crore)
Stations
Previous Tariff Order
FY 11 FY 12 FY 13
ETPS 113 119 126
NCTPS 132 138 145
MTPS 87 92 97
TTPS 120 127 134
Total Thermal 451 476 502
BBGTPS 10 11 11
Kuttalam 13 14 14
Kovilkalappal 10 10 11
Valuthur 13 14 14
Total Gas 47 49 51
Erode 35 38 40
Kadamparai 30 32 34
Kundah 48 50 53
Tirunelveli 35 38 41
Total Hydro 149 158 168
Tirunelveli -
Wind
8 9 10
Udumalpet -
Wind
3 4 4
Total Wind 12 13 14

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Stations
Previous Tariff Order
FY 11 FY 12 FY 13
Total
Generation
658 695 734

6.1.17 TANGEDCO in its Petition has not discussed the O&M Expenses for its generation
business. TANGEDCO has submitted the O&M Expenses from FY 2009-10 to FY 2012-
13 in Form-19 of each station attached along with the Petition. TANGEDCO has also
submitted the component-wise break-up of Employee expenses, R&M Expenses and
A&G Expenses in Form- 17, Form-16 and Form-18 respectively. The O&M Expenses
submitted by TANGEDCO in the Petition are tabulated below:
Table 120: O&M Expenses as submitted by TANGEDCO
(Rs. Crore)
Stations
TANGEDCO Petition
FY 11 FY 12 FY 13
ETPS 95 140 146
NCTPS 121 149 155
MTPS 117 90 93
TTPS 147 124 129
Total Thermal 480 503 523
BBGTPS 6 10 10
Kuttalam 21 17 18
Kovilkalappal 7 11 12
Valuthur 11 10 10
Total Gas 45 47 49
Erode 34 27 28
Kadamparai 19 21 21
Kundah 39 37 39
Tirunelveli 23 28 29
Total Hydro 116 113 117
Tirunelveli -
Wind
4 4 4
Udumalpet -
Wind
3 3 3
Total Wind 7 7 7*
Total
Generation
648 670 696
* While GFA for wind and associated Transmission has been separated, the O&M expenses could not be
separated.


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Commissions View:
6.1.18 The Commission has been guided by Regulation-25 of TNERC Tariff Regulations while
determining Operation and Maintenance Expenses. Regulation-25 of TNERC Tariff
Regulations states as under:
25. Operation and Maintenance Expenses
1. The operation and maintenance expenses shall be derived on the basis of
actual operation and maintenance expenses for the past five years previous to
current year based on the audited Annual Accounts excluding abnormal
operation and maintenance expenses, if any, after prudence check by the
Commission. The Commission may, if considered necessary engage
Consultant / Auditors in the process of prudence check for correctness.
2. The average of such normative operation and maintenance expenses after
prudence check shall be escalated at the rate of 4% per annum to arrive at
operation and maintenance expenses for current year i.e. base year and
ensuing year.
3. The base operation and maintenance expenses so determined shall be
escalated further at the rate of 4% per annum to arrive at permissible
operation and maintenance expenses for the relevant years of tariff period.

6.1.19 The Commission observed that TANGEDCO has submitted component-wise O&M
Expenses for previous 6 years, i.e., FY 2005-06 to FY 2010-11. The Commission also
observed that O&M Expenses for various Stations of TANGEDCO have uneven pattern.
The basis for approval of O&M Expenses for various Stations of TANGEDCO is detailed
as under:
Thermal Power Stations:
6.1.20 For Ennore TPS, the Commission observed that TANGEDCO has submitted O&M
Expenses data for previous 5 years only, i.e., from FY 2006-07 to FY 2010-11. The
Commission has accepted the O&M Expenses as submitted by TANGEDCO for FY
2010-11. However the Commission is of the view that the employee expenses of ETPS
are very high. The Commission understands that ETPS is going to be decommissioned by
FY 2016-17. Therefore, TANGEDCO may consider re-deployment of Manpower in case
of ETPS so as to have efficient utilization of resources.


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6.1.21 For FY 2011-12 and FY 2012-13, the Commission has considered 4% increase on year-
on-year basis considering FY 2010-11 as the base year. The O&M expenses for Ennore
TPS are tabulated below:
Table 121: O&M Expenses for Ennore TPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M
Expenses
3207 3207 7298 3336 7590 3469
Employees
Expenses
5411 5411 5534 5627 5756 5852
A&G Expenses 892 892 1203 928 1252 965
Total O&M
Expenses
9510 9510 14036 9891 14598 10286

6.1.22 For TTPS, the Commission observed that from FY 2005-06 to FY 2007-08, the O&M
expenses varied in between Rs. 8500 Lakh and Rs. 9500 Lakh. In FY 2008-09, there was
an abnormal increase of Rs. 4200 Lakh due to which O&M expenses rose to Rs.
13527.20 Lakh. In FY 2009-10, the O&M expenses are Rs. 12556.40 Lakh which means
reduction by Rs. 1000 Lakh. As regards FY 2010-11, TANGEDCO has submitted actual
expenses of Rs. 14664.32 Lakh during FY 2010-11 which is again an abnormal increase
of Rs. 2100 Lakh. Therefore, the Commission has relied on average of 5 years, i.e., from
FY 2005-06 to FY 2009-10 for calculation of O&M Expenses in FY 2010-11. The
Commission has further considered an escalation of 4% on year on year basis for
projecting O&M expenses in FY 2011-12 and FY 2012-13 on approved O&M expenses
of FY 2010-11.
Table 122: O&M Expenses for TTPS
(Rs. Lakh)
Particulars
FY 2010-11
FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M
Expenses
5860 3182 4012 3309 4173 3442
Employee
Expenses
7254 5588 6305 5812 6557 6044
A&G
Expenses
1550 1958 2059 2036 2141 2118
Total O&M
Expenses
14664 10728 12376 11157 12871 11603

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6.1.23 For MTPS, the Commission observed that there is an abnormal increase of Rs. 6000 Lakh
in FY 2008-09 and reduction by Rs. 3000 Lakh in FY 2009-10. Therefore the
Commission has followed the same methodology as detailed in case of TTPS.
Table 123: O&M Expenses for MTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M
Expenses
3274 2617 2249 2722 2339 2831
Employees
Expenses
6744 4558 5450 4740 5668 4930
A&G
Expenses
1640 1107 1266 1151 1316 1197
Total O&M
Expenses
11657 8282 8965 8613 9324 8957

6.1.24 For NCTPS, the Commission feels that the O&M expenses during FY 2010-11 as
submitted by TANGEDCO are reasonable. The Commission has approved the same for
FY 2010-11. For FY 2011-12 and FY 2012-13, the Commission has considered 4%
increase on year-on-year basis considering FY 2010-11 as the base year.
Table 124: O&M Expenses for NCTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M
Expenses
5418 5418 9204 5635 9572 5861
Employees
Expenses
5682 5682 4429 5909 4606 6145
A&G
Expenses
1039 1039 1279 1080 1330 1124
Total O&M
Expenses
12139 12139 14911 12624 15508 13129




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Gas Turbine Power Stations:
6.1.25 In case of Gas Turbine Power Stations, the Commission has accepted the submission of
TANGEDCO towards O&M expenses in FY 2010-11 for all GTPS except VGTPS.
6.1.26 In case of VGTPS, the Commission observed that TANGEDCO has submitted the
employee expenses as negative. The Commission is of the view that the employee
expenses cannot be negative. Hence, the Commission has taken 4 years average of past 4
years, i.e., from FY 2005-06 to FY 2007-08 and FY 2009-10. Since FY 2008-09 has
negative figures, the Commission has not considered the same for calculation of O&M
Expenses.
6.1.27 The Commission found many discrepancies in the data submitted by TANGEDCO. The
Commission directs TANGEDCO to properly submit the data in next Tariff Petition.
6.1.28 As regards FY 2011-12 and FY 2012-13, the Commission has taken 4% escalation
considering FY 2010-11 as the base year.
Table 125: O&M Expenses for BBGTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses 78 78 306 82 318 85
Employee
Expenses
368 368 370 383 385 398
A&G Expenses
152 152 293 158 305 164
O&M Expenses
598 598 969 622 1008 647

Table 126: O&M Expenses for KGTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses 1557 1557 1229 1229 1278 1278
Employee
Expenses
320 320 160 160 166 166
A&G Expenses
189 189 315 315 328 328
O&M Expenses
2066 2066 1704 1704 1772 1772




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Table 127: O&M Expenses for TGTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses 154 154 571 160 594 166
Employee
Expenses
359 359 283 373 294 388
A&G Expenses
232 232 270 242 281 251
O&M Expenses
745 745 1125 774 1170 805

Table 128: O&M Expenses for VGTPS
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses 1039 192 360 200 374 208
Employee
Expenses
-364 130 114 135 119 140
A&G Expenses
402 506 499 527 519 548
O&M Expenses
1076 828 974 862 1012 896

Hydro Generating Stations:
6.1.29 For Hydro Generating Stations, the Commission opines that the O&M expenses
submitted by TANGEDCO for FY 2010-11 are reasonable. Therefore, the Commission
has accepted the submission of TANGEDCO towards FY 2010-11. As regards FY 2011-
12 and FY 2012-13, the Commission has taken 4% escalation considering FY 2010-11 as
the base year.
Table 129: Erode Generation Circle
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses 104 104 161 109 167 113
Employees
Expenses
2865 2865 1777 2979 1848 3099
A & G Expneses 472 472 748 491 778 510
Total O&M
Expenses
3441 3441 2686 3579 2793 3722




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Table 130: Kundah Generation Circle
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses
316 316 223 223 232 232
Employee
Expenses
2227 2227 1996 1996 2075 2075
A&G Expenses
1327 1327 1515 1515 1576 1576
Total O&M
Expenses
3870 3870 3734 3734 3883 3883

Table 131: Kadamparai Generation Circle
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses
183 183 263 191 274 198
Employee
Expenses
1470 1470 1260 1529 1311 1590
A&G Expenses
272 272 538 283 560 295
Total O&M
Expenses
1926 1926 2062 2003 2144 2083

Table 132: Tirunelveli Generation Circle
(Rs. Lakh)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Commission Petition Commission Petition Commission
R&M Expenses
171 171 643 178 669 185
Employee
Expenses
1833 1833 1550 1906 1612 1982
A&G Expenses
325 325 559 338 582 351
Total O&M
Expenses
2329 2329 2752 2422 2862 2519

Other debts and Miscellaneous Income:
6.1.30 The Commission observed that other debts are within the limits approved by the
Commission in Previous Tariff Order. The Commission has considered other debts and
miscellaneous income as the same as submitted by TANGEDCO in the Petition.


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6.1.31 Based upon the above discussion, the fixed charges for various Generating Stations are
tabulated below:
Table 133: Fixed Charges for Ennore TPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 34.0 35.9 38.8 61.0 61.3 61.4 60.9 61.2 61.4
Interest on Loan 12.1 57.5 91.5 8.2 8.5 8.4 8.2 8.5 8.4
Return on Equity 19.4 24.2 36.5 20.2 23.9 33.6 16.0 22.1 28.8
O&M Expenses 95.1 140.4 146.0 95.1 140.4 146.0 95.1 98.9 102.9
Other Debts 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Less: Misc Income 4.1 6.0 6.0 4.1 6.0 6.0 4.1 6.0 6.0
Total 156.7 252.1 306.9 180.6 228.3 243.6 176.3 184.9 195.6

Table 134: Fixed Charges for TTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 60.9 64.4 69.6 52.9 53.9 55.9 52.9 53.9 55.9
Interest on Loan 21.7 103.1 163.9 14.5 15.3 15.6 14.5 15.3 15.6
Return on Equity 34.8 43.3 65.4 35.8 42.9 62.4 29.7 39.3 52.6
O&M Expenses 146.6 123.8 128.7 146.6 123.8 128.7 107.3 111.6 116.0
Other Debts 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Less: Misc Income 18.8 13.9 13.9 18.8 13.9 13.9 18.8 13.9 13.9
Total 245.6 321.0 414.0 231.4 222.3 249 185.9 206.5 226.6

Table 135: Fixed Charges for MTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 32.2 34.0 36.7 37.6 39.8 40.5 37.6 39.7 40.5
Interest on Loan 11.4 54.4 86.5 7.8 8.5 8.5 7.8 8.5 8.5
Return on Equity 18.4 22.9 34.5 19.2 23.9 34.1 16.0 21.6 29.0
O&M Expenses 116.6 89.6 93.2 116.6 89.6 93.2 82.8 86.1 89.6
Other Debts 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Less: Misc Income 21.8 14.1 14.1 21.8 14.1 14.1 21.8 14.1 14.1
Total 156.9 187.0 237.0 159.6 147.9 162.4 122.6 142.0 153.6



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Table 136: Fixed Charges for NCTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 65.5 69.3 74.8 61.5 63.3 64.4 61.5 63.3 64.4
Interest on Loan 23.3 110.8 176.3 15.4 16.5 16.4 15.4 16.5 16.4
Return on Equity 37.5 46.6 70.3 38.1 46.1 65.8 31.9 42.1 55.9
O&M Expenses 121.4 149.1 155.1 121.4 149.1 155.1 121.4 126.2 131.3
Other Debts 0.3 0.4 0.4 0.3 0.4 0.4 0.3 0.4 0.4
Less: Misc Income 14.2 10.7 10.7 14.2 10.7 10.7 14.2 10.7 10.7
Total 233.9 365.5 466.1 222.5 264.7 291.40 216.3 237.8 257.8

Table 137: Fixed Charges for KGTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 11.26 11.90 12.86 15.83 15.86 17.06 15.83 15.86 17.06
Interest on Loan 4.01 19.05 30.30 2.72 2.83 2.98 2.72 2.83 2.98
Return on Equity 6.44 8.01 12.08 6.72 7.92 11.95 5.63 7.32 9.94
O&M Expenses 20.66 17.06 17.75 20.66 17.04 17.72 20.66 17.04 17.72
Other Debts 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Less: Misc Income 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Total 42.4 56.1 73.0 46.0 43.7 49.76 44.9 43.1 47.8

Table 138: Fixed Charges for BBGTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 17.6 18.6 20.1 30.0 30.0 30.0 30.0 30.0 30.0
Interest on Loan 6.3 29.7 47.3 4.2 4.4 4.3 4.2 4.4 4.3
Return on Equity 10.0 12.5 18.9 10.5 12.4 17.3 8.8 11.4 14.9
O&M Expenses 6.0 9.7 10.1 6.0 9.7 10.1 6.0 6.2 6.5
Other Debts 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Less: Misc Income 0.0 0.1 0.1 0.0 0.1 0.1 0.0 0.1 0.1
Total 39.9 70.4 96.2 50.8 56.5 61.7 49.2 52.1 55.6

Table 139: Fixed Charges for TGTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 14.7 15.5 16.8 20.3 20.6 20.9 20.2 20.6 20.9

214 | P a g e

Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Interest on Loan 5.2 24.8 39.5 3.5 3.7 3.7 3.5 3.7 3.7
Return on Equity 8.4 10.4 15.8 8.6 10.3 14.7 6.8 9.5 12.5
O&M Expenses 7.4 11.2 11.7 7.4 11.2 11.7 7.4 7.7 8.1
Other Debts 0.08 0.08 0.08 0.08 0.08 0.08 0.1 0.1 0.1
Less: Misc Income 0.05 0.11 0.11 0.05 0.11 0.11 0.0 0.1 0.1
Total 35.8 62.0 83.7 39.8 45.8 50.97 38.0 41.5 45.1

Table 140: Fixed Charges for VGTPS
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 27.3 28.9 31.2 27.3 43.1 46.0 27.3 43.1 46.0
Interest on Loan 9.7 46.2 73.5 4.2 6.9 7.2 4.2 6.9 7.2
Return on Equity 15.6 19.4 29.3 10.4 19.2 28.8 8.6 14.8 24.0
O&M Expenses 10.8 9.7 10.1 10.8 9.7 10.1 7.9 8.2 8.5
Other Debts 0.1 0.1 0.2 0.1 0.2 0.2 0.1 0.2 0.2
Less: Misc Income 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Total 63.5 104.3 144.2 52.7 79 92.2 48.1 73.1 85.7

Table 141: Fixed Charges for Erode Generation Circle
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 21.35 22.58 24.39 14.08 14.12 24.69 14.07 14.11 24.69
Interest on Loan 7.60 36.13 57.46 5.16 5.37 9.21 5.16 5.37 9.21
Return on Equity 12.21 15.19 22.91 12.76 15.04 36.92 10.70 13.90 25.98
O&M Expenses 34.41 26.86 27.93 34.41 26.86 27.93 34.41 35.79 37.22
Other Debts 0.11 0.12 0.12 0.11 0.12 0.12 0.11 0.12 0.12
Less: Misc Income 0.09 0.42 0.42 0.09 0.42 0.42 0.09 0.42 0.42
Total 75.60 100.45 132.39 66.4 61.09 98.45 64.36 68.86 96.80

Table 142: Fixed Charges for Kadamparai Generation Circle
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 11.4 12.0 13.0 8.9 9.0 9.8 8.9 8.9 9.8
Interest on Loan 4.0 19.2 30.6 2.7 2.9 3.1 2.7 2.9 3.1

215 | P a g e

Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Return on Equity 6.5 8.1 12.2 6.8 8.0 12.3 5.6 7.4 10.1
O&M Expenses 19.3 20.6 21.4 19.3 20.6 21.4 19.3 20.0 20.8
Other Debts 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Less: Misc Income 0.2 0.3 0.3 0.2 0.3 0.3 0.2 0.3 0.3
Total 41.0 59.7 77.0 37.6 40.3 46.4 36.4 39.0 43.7

Table 143: Fixed Charges for Kundah Generation Circle
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 30.3 32.0 34.6 22.4 22.5 23.3 22.4 22.5 23.3
Interest on Loan 10.8 51.2 81.5 7.3 7.6 7.8 7.3 7.6 7.8
Return on Equity 17.3 21.5 32.5 18.0 21.3 31.1 14.9 19.7 26.2
O&M Expenses 38.7 37.3 38.8 38.7 37.3 38.8 38.7 37.3 38.8
Other Debts 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Less: Misc Income 0.8 1.0 1.0 0.8 1.0 1.0 0.8 1.0 1.0
Total 96.4 141.3 186.5 85.8 88 100.4 82.7 86.3 95.3

Table 144: Fixed Charges for Tirunelveli Generation Circle
(Rs. Crore)
Components/Year
Petition 2011 Revised Submission TNERC Approval
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Depreciation 11.0 11.7 12.6 6.8 9.4 10.3 6.8 9.4 10.3
Interest on Loan 3.9 15.9 21.8 2.3 3.3 3.5 2.3 3.3 3.5
Return on Equity 6.3 7.9 11.8 5.7 9.3 14.2 4.5 7.5 11.8
O&M Expenses 23.3 27.5 28.6 23.3 27.5 28.6 23.3 24.2 25.2
Other Debts 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Less: Misc Income 1.2 1.7 1.7 1.2 1.7 1.7 1.2 1.7 1.7
Total 43.4 61.3 73.2 36.9 47.9 55 35.7 42.8 49.1

6.1.32 Regulation-42 of TNERC Tariff Regulations, 2005 states as under:
42. Recovery of Capacity Charges
1. Full capacity charges (Fixed Charges) shall be recoverable at target availability
specified in clause (1) of Regulation 37.
2. Recovery of capacity charges below the level of target availability will be on pro
rata basis. At zero availability, no capacity charges shall be payable.


216 | P a g e

6.1.33 The above capacity charges as determined by the Commission are to be recovered when
TANGEDCO is able to meet the target in terms of PLF set by the Commission in
Previous Tariff Order. The Commission observed that during FY 2010-11 TANGEDCO
was not able to achieve the Target PLF in respect of following generating Stations:
S. No Power Stations
Years for which capacity
charges fully not recovered
1 ETPS FY 11 and FY 12
2 TTPS FY 11
3 KGTPS FY 11
4 VGTPS FY 11 and FY 12

6.1.34 The Commission is of the view that these Stations fall outside the Merit Order Despatch.
The non-availability of these Power Stations leads to costly power purchase which gets
reflected in power purchase cost in the ARR. Therefore, the Commission has decided to
allow the capacity charges on Pro-rata basis. For Ennore TPS, the target PLF was 50%
whereas for Kuttalam GTPS and Valuthur GTPS, the target PLF was 70%. The Capacity
charges as allowed by the Commission are tabulated below:
Table 145: Capacity charges allowed for FY 2010-11
(Rs. Crore)
S. No Power Stations
FY 2010-11
Target
PLF
Capacity
charges
Actual
PLF
Allowable
Capacity Charges
I Thermal
1 ETPS 50% 176.3 35.42% 124.9
2 TTPS 80% 185.9 77.33% 179.7

II Gas Turbine
1 KGTPS 70% 44.9 19.29% 12.4
2 VGTPS 70% 48.1 67.54% 46.4


Table 146: Capacity Charges allowed for FY 2011-12
(Rs. Crore)
S. No Power Stations
FY 2011-12
Target PLF Capacity charges Actual PLF
Allowable
Capacity Charges
I Thermal
1 ETPS 50% 184.9 26% 95.5

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S. No Power Stations
FY 2011-12
Target PLF Capacity charges Actual PLF
Allowable
Capacity Charges

II Gas Turbine
1 TGTPS 69% 41.5 65% 39.0
2 VGTPS 70% 73.1 67% 70.2


Part-II: Variable Cost:
6.1.35 The Commission has worked out the variable cost for various generating stations on the
basis of data submitted in the petition and the subsequent submission of TANGEDCO
vide replies to the datagaps raised by the Commission. The variable cost as determined
by the Commission in respect of various generating stations of TANGEDCO is detailed
as under:
Thermal Power Stations:
6.1.36 As per Regulation 43 (ii) of the Tarff Regulation, the Energy (Variable) charges shall be
worked out on the basis of ex-bus energy delivered / sent out from the generating station.
Rate of energy charges is based on the following elements:
a. Price of primary fuel
b. Quantum of primary fuel (coal) in kg required for generation of one kWh of
electricity at generator terminals, which shall be computed on the basis of Gross
Station Heat Rate (less heat contributed by secondary fuel oil) and gross calorific
value of coal.
c. Price of secondary fuel oil
d. Normative quantity of secondary fuel
e. Normative auxiliary consumption
The above elements have been discussed in detail as under:





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a. Price of Primary Fuel:
6.1.37 The Commission in previous year calculated the weighted average cost of coal on the
basis of quantity as per allocation. The Commission arrived at the following weighted
average prices for various Thermal Power Stations:
Table 147: Price of Primary Fuel approved by the Commission in previous Tariff Order
(Rs./ MT)
S. No Particulars FY 11 FY 12 FY 13
1 Ennore TPS 1938 1957 1957
2 TTPS 3063 3094 3125
3 MTPS 2722 2749 2777
4 NCTPS 2298 2321 2344

6.1.38 TANGEDCO in its Petition submitted that the projections of price of coal have been
based on inflationary trends year over year. The price of primary fuel (both Indian and
Imported) in respect of each of the stations is tabulated below
Table 148: Price of Indian and Imported Coal in respected of Individual Stations
(Rs./ MT)
Sources FY 2010-11 FY 2011-12 FY 2012-13
ETPS 2278 2112 2217
TTPS (Indian) 2658 3180 3340
TTPS (Imported) 4970 6188 6497
MTPS (Indian) 2700 2480 2603
MTPS (Imported) 5532 6567 6895
NCTPS (Indian) 2208 2040 2141
NCTPS(Imported) 5113 6127 6433

Commissions View:
6.1.39 The Commission in order to determine the weighted average price of coal asked
TANGEDCO to submit the month-wise consumption of Indian and Imported coal plant-
wise along with the price of coal. TANGEDCO in reply to the datagaps raised by the
Commission submitted the month-wise consumption of Indian and Imported coal along
with prices.
6.1.40 The Commission worked out the weighted average price of coal on the basis of the data
submitted by TANGEDCO. The Commission observed that the weighted average price of
coal was different as compared to the figures submitted in the Form-7 attached along with

219 | P a g e

the Petition. The Commission believes that for FY 2010-11, the figures submitted in the
Petition are actual figures and has decided to adopt the figures as given in Form-7 of the
Petition.
6.1.41 As regards FY 2011-12, TANGEDCO submitted actual month-wise consumption of
Indian and Imported Coal along with prices up to the month of November 2011. The
Commission calculated the weighted average price of coal on the basis of data submitted
by TANGEDCO up to November 2011 and adopted the same as landed price of coal for
FY 2011-12 and FY 2012-13.
6.1.42 Based upon the actual data submitted by TANGEDCO, the blending ratio for various
Thermal Power Stations as considered by the Commission is tabulated below:
Table 149: Blending Ratio for various Thermal Power Stations
Thermal Stations Blending Ratio
TTPS 76:24
MTPS 80:20
NCTPS 81:19

6.1.43 The landed price of coal as approved by the Commission for different Thermal Power
Stations taking into account the blendin ratio as discussed above is tabulated below:
Table 150: Landed Price of Coal approved by the Commission
(Rs. / MT)
S. No Particulars
FY 2010-11 FY 2011-12
Last
Order
Petition Commission
Last
Order
Petition Commission
1 ETPS 1938
2278 2278 1957
2112 2261
2
TTPS-Indian
3063
2658
3130 3094
3180
3814
Imported
4970
6188
3
MTPS-Indian
2722
2700
3084 2749
2480
3395
Imported
5532
6567
4
NCTPS-Indian
2298
2208
2559 2321
2040
2939
Imported
5113
6127

S. No Particulars
FY 2012-13
Last
Order
Petition Commission
1 ETPS
1977 2217 2261
2
TTPS-Indian
3125 3340 3814

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S. No Particulars
FY 2012-13
Last
Order
Petition Commission
Imported
6497
3
MTPS-Indian
2777
2603
3395
Imported
6895
4
NCTPS-Indian
2344
2141
2939
Imported
6433

b. Gross Station Heat Rate:
6.1.44 The Commission in Previous Tariff Order relaxed the norms for Station Heat Rate of
TTPS and NCTPS for FY 2010-11.The Commission allowed the following Station Heat
Rate for various Thermal Power Stations:
Table 151: Heat Rate allowed by the Commission
(Kcal/ kWh)
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS
3200 3200 3200
2 TTPS
2500 2500 2500
3 MTPS
2500 2500 2500
4 NCTPS
2466 2466 2466

6.1.45 The Gross Station Heat Rate (SHR) for various Thermal Power Stations as submitted by
TANGEDCO in Form-7 attached along with the Petition is tabulated below:
Table 152: Heat Rate as submitted by TANGEDCO
(Kcal/ kWh)
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS
3504
3600
3600
2 TTPS
2611
2651
2651
3 MTPS
2519
2532
2532
4 NCTPS
2533
2485
2485

Commissions View:
6.1.46 In reply to data gaps raised by the Commission, TANGECO submitted the actual SHR
achieved till December 2011 and projections up to March 2011. The Commission
observed that the SHR submitted by TANGEDCO till December 2011 was almost same

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for all Thermal Power Stations except Ennore TPS as approved by the Commission in
Previous Tariff Order
6.1.47 The Commission in the Previous Tariff Order relaxed the norm for SHR for TTPS and
NCTPS only for FY 2010-11. The relaxed norms for SHR for various Thermal Power
Stations as approved by the Commission in FY 2010-11 in Previous Tariff Order and
specified Regulation-37 (iii) of TNERC Tariff Regulations, 2005 are tabulated below:

Table 153: SHR for various Thermal Power Stations as per the Regulations and Previous
Tariff Order in FY 2010-11
(Kcal/ kWh)
Thermal Stations As per Regulations
As per Previous Tariff
Order
TTPS 2453 2500
MTPS 2500 2500
NCTPS 2393 2466
ETPS 3200 3200

6.1.48 For FY 2010-11, the Commission has allowed the SHR for various Thermal Power
Stations in accordance with the relaxed norms approved in the Previous Tariff Order.
6.1.49 As regards SHR in FY 2011-12 and FY 2012-13, the Commission has allowed the SHR
for various Thermal Power Stations in accordance with the norms specified in
Regulation-37 (iii) of the TNERC Tariff Regulations, 2005.
6.1.50 The SHR as accepted by the Commission for different Thermal Power Station is
tabulated below:
Table 154: SHR for various Thermal Power Stations as accepted by the Commission
(Kcal/ kWh)
S.
No
Particulars
FY 2010-11 FY 2011-12
Last Order Petition Commission Last Order Petition Commission
1 ETPS
3200 3504 3200 3200
3600 3200
2 TTPS
2500 2611 2500 2500
2651 2453
3 MTPS
2500 2519 2500 2500
2532 2500
4 NCTPS
2466 2533 2466 2466
2485 2393


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Particulars
FY 2012-13
Last
Order
Petition Commission
ETPS
3200 3600
3200
TTPS
2500 2651
2453
MTPS
2500 2532
2500
NCTPS
2466 2485
2393

c. Gross Calorific value of coal:
6.1.51 The Commission in Previous Tariff Order calculated the weighted average calorific value
of coal according to the blending ratio as per the allocated quantity for different types of
coal. The gross calorific value of coal as approved by the Commission in Previous Tariff
Order is tabulated below:
Table 155: Gross Calorific value of coal approved in Previous Tariff Order
(kcal/ kg)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS 4323 4323 4323
2 TTPS 4306 4306 4306
3 MTPS 4219 4219 4219
4 NCTPS 4346 4346 4346

6.1.52 TANGEDCO in its Petition submitted the weighted average price of coal from FY 2010-
11 to FY 2012-13 which is tabulated below:
Table 156: Gross Calorific Value of coal as submitted in the Petition
(kcal/ kg)
S. No Particulars FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS 2979 2986 & 3200-3500 3200-3500
2 TTPS 3255 3483, 3200-3500 3200-3500
3 MTPS 3363 3648, 3200-3800 3200-3800
4 NCTPS 3466 3807, 3200-3800 3200-3800



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Commissions View:
6.1.53 In reply to data gaps raised by the Commission, TANGEDCO vide its letter dated
January 25, 2012 submitted the actual Gross calorific value of coal (Kcal/ Kg) up to
December 2011 which is tabulated below:
Table 157: Gross Calorific Value upto December 2011
(kcal/ kg)
S. No Particulars
FY 2011-12
Actuals upto Dec. 2011
1 ETPS 3120
2 TTPS 3487
3 MTPS 3570
4 NCTPS 3761

6.1.54 The Commission further asked TANGEDCO to submit the consumption of coal along
with the GCV of Indian and Imported coal so as to understand the mix of coal used. In
reply to the above query, TANGEDCO submitted the GCV of Indian and Imported coal
along with the quantity of coal during FY 2010-11 and actual up to January 2012.
TANGEDCO further vide its letter dated February 1, 2012 requested to consider the
relaxed norms for Gross Calorific Value (GCV) in respect of four Thermal Power
Stations owned by them. TANGEDCO vide further correspondences in this matter
submitted the actual weighted average of GCV of coal based on the blending ratio
adopted between the Indian and Imported Coal. The Commission has taken note of the
submission of TANGEDCO in relation to GCV of various Thermal Power Stations. The
Commission has decided to allow the actual GCV figures as submitted by TANGEDCO
on the basis of data submitted from January 2011 to January 2012.
6.1.55 The GCV from FY 2010-11 to FY 2012-13 as allowed by the Commission in this Tariff
Order is tabulated below:
Table 158: Weighted average calorific value of coal approved by the Commission
(kcal/ kg)
Particulars
FY 2010-11 FY 2011-12
Last
Order
Petition Commission
Last
Order
Petition
Actuals
upto dec.
2011
Actuals
upto
Jan.2011
Commission
ETPS 4323 2979 3088 4323
2986 &
3200-3500
3120 3153 3088

224 | P a g e

Particulars
FY 2010-11 FY 2011-12
Last
Order
Petition Commission
Last
Order
Petition
Actuals
upto dec.
2011
Actuals
upto
Jan.2011
Commission
TTPS 4306 3255 3485 4306
3483,
3200-3500
3487 3647 3485
MTPS 4219 3363 3525 4219
3648,
3200-3800
3570 3554 3525
NCTPS 4346 3466 3728 4346
3807,
3200-3800
3761 3768 3728

S.
No
Particulars
FY 2012-13
Last Order Petition Commission
1 ETPS 4323 3200-3500 3088
2 TTPS 4306 3200-3500 3485
3 MTPS 4219 3200-3800 3525
4 NCTPS 4346 3200-3800 3728

d. Specific Fuel Oil Consumption:
6.1.56 The Commission in Previous Tariff Order approved the following as the Specific fuel oil
consumption from FY 2010-11 to FY 2012-13:
Table 159: Specific Fuel Oil Consumption
(ml/ kWh)
S. No Particulars
Quantity
1 ETPS
6
2 TTPS
2
3 MTPS
2
4 NCTPS
2

6.1.57 TANGEDCO in the Petition submitted the following Specific Fuel Oil Consumption
from FY 2010-11 to FY 2012-13:
Table 160: Specific Fuel Oil Consumption
(ml/ kWh)
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS
12
10
10
2 TTPS
5
2
2
3 MTPS
1
0.55
1.89
4 NCTPS
0.98
0.44
0.44

225 | P a g e


Commissions View:
6.1.58 The Commission observed that following normative secondary fuel oil consumption per
kWh has been specified in the Tariff Regulations:
(a) Coal based generating stations except ETPS - 2 ml / kWh
(b) ETPS -12 ml / kWh
6.1.59 The Commission observed that for ETPS, TANGEDCO has claimed secondary fuel oil
consumption of 12 ml/ kWh. The Commission has decided to approve the same since it is
within limits specified in the Regulations. As regard TTPS, the Commission observed
that TANGEDCO has claimed 5ml/ kWh as specific fuel oil consumption in FY 2010-11.
In reply to data gaps regarding the higher specific oil consumption, TANGEDCO
submitted that the ID fan impellers in Unit-III are getting eroded frequently and need
replacement due to non-availability of 7 ESP fields since January 2009 resulting in partial
load operations and Unit tripping which in turn increases furnace oil consumption.
TANGEDCO further submitted that during the month of July 2010 to December 2010 the
coal received was very wet, sticky and slushy which forced the use of oil for boiler flame
stability in order to avoid trippings. If oil was not used, Unit-I, II and III would have
tripped because of trapezoidal design of bunkers.
6.1.60 The Commission is of the view that TANGEDCO has the responsibility to inspect and
ensure that the coal received should be of right quality. The Commission has allowed
higher landed price of coal on the basis of data submitted in the Petition. Accordingly,
the Commission has decided to allow the specific fuel oil consumption as per the norms
specified in the Regulations.
6.1.61 For MTPS and NCTPS, the Commission observed that the specific fuel oil consumption
as claimed by TANGEDCO in the Petition is within approved limits. Therefore the
Commission has decided to adopt the norms as specified in the Regulations. The specific
fuel oil consumption as approved by the Commission is tabulated below:
Table 161: Specific fuel oil consumption
(ml/ kWh)
Particulars
FY 2010-11 FY 2011-12
Last Order Petition Commission Last Order Petition Commission
ETPS
6 12 12 6
10 10
TTPS
2 5 2 2
2 2

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Particulars
FY 2010-11 FY 2011-12
Last Order Petition Commission Last Order Petition Commission
MTPS
2 1 2 2
0.55 2
NCTPS
2 0.98 2 2
0.44 2

Particulars
FY 2012-13
Last Order Petition Commission
ETPS
6 10
10
TTPS
2 2
2
MTPS
2 1.89
2
NCTPS
2 0.44
2.00

e. Price of Secondary Fuel Oil:
6.1.62 The Commission in Previous Tariff Order approved the following as the price of
Secondary fuel oil from FY 2010-11 to FY 2012-13 on the basis of prevailing prices as
communicated by the oil suppliers with an escalation of 5% for FY 2011-12 and FY
2012-13.
Table 162: Price of Secondary Fuel Oil
(Rs./ Kl)
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS
34751 36594 38423
2 TTPS
34835 36576 38405
3 MTPS
35588 37367 39235
4 NCTPS
34751 36594 38423

6.1.63 TANGEDCO in its Petition submitted the price of Secondary fuel oil from FY 2010-11 to
FY 2012-13 which is tabulated below:
Table 163: Price of Secondary Fuel Oil
(Rs/ Kl)
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
1 ETPS
30174
39650
41633
2 TTPS
29839
39309
41274
3 MTPS
28988
37330
31959
4 NCTPS
29753
39423
41394

Commissions View:

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6.1.64 As regards FY 2010-11, the Commission has accepted the price of secondary fuel oil as
submitted by TANGEDCO in the Petition as the same is within the approved limit
specified by the Commission in Previous Tariff Order. For FY 2011-12 and FY 2012-13,
the Commission asked TANGEDCO to submit the price of HSD and LDO used in
various Thermal Power Stations along with the consumption. In reply to datagaps,
TANGEDCO submitted the actual month-wise consumption and the price of LDO and
HSD upto the month of November 2011. The Commission has calculated the weighted
average and adopted the same as price of secondary fuel oil in FY 2011-12 and FY 2012-
13.
6.1.65 The price of secondary fuel oil as approved by the Commission from FY 2010-11 to FY
2012-12 is tabulated below:
Table 164: Price of Secondary Fuel Oil
(Rs./ Kl)
Particulars
FY 2010-11 FY 2011-12
Last Order Petition Commission Last Order Petition Commission
ETPS
34751 30174 30174 36594
39650 40361
TTPS
34835 29839 29839 36576
39309 37653
MTPS
35588 28988 28988 37367
37330 36900
NCTPS
34751 29753 29753 36594
39423 39997

Particulars
FY 2012-13
Last Order Petition Commission
ETPS
38423 41633
40361
TTPS
38405 41274
37653
MTPS
39235 31959
36900
NCTPS
38423 41394
39997

f. Variable Cost for Thermal Power Stations:
6.1.66 On the basis of above discussion, the Commission has calculated the variable cost for
various Thermal Power Stations of TANGEDCO which is tabulated as under:



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Ennore TPS:
Table 165: Variable Cost for Ennore Thermal Power Stations
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 450 450 450
2 Gross Station Heat Rate Kcal/kWh 3200 3200 3200
3 Specific fuel oil consumption ml/kWh 12 10 10
4 Average calorific value of oil Kcal/l 10491 10491 10491
5
Average calorific value of
Coal
Kcal/Kg 3088 3088 3088
6 Weighted average price of oil Rs./Kl 30174 40361 40361
7 Average landed cost of coal Rs./MT 2278 2261 2261
8 Rate energy charges from Oil Paisa/kWh 35.15 41.69 41.69
9 Heat contributed from Oil Kcal/kWh 122.22 108.37 108.37
10 Heat contributed from Coal Kcal/kWh 3077.78 3091.63 3091.63
11 Specific consumption of coal Kg/kWh 1.00 1.00 1.00
12 Rate of energy from Coal Paisa/kWh 269.58 270.71 266.36
13 Variable Cost Paisa/kWh 304.73 312.40 308.05
14 Previous Tariff Order Paisa/kWh 189.17 192.08 195.07

Mettur TPS:
Table 166: Variable Cost for Mettur TPS
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 840 840 840
2 Gross Station Heat Rate Kcal/kWh 2500 2500 2500
3 Specific fuel oil consumption ml/kWh 2.0 2.00 2.00
4 Average calorific value of oil Kcal/l 10544 10544 10544
5
Average calorific value of
Coal
Kcal/Kg 3525 3525 3525
6 Weighted average price of oil Rs./Kl 28988 36900 36900
7 Average landed cost of coal Rs./MT 3084 3395 3395
8 Rate energy charges from Oil Paisa/kWh 5.80 7.38 7.38
9 Heat contributed from Oil Kcal/kWh 21.09 21.09 21.09
10 Heat contributed from Coal Kcal/kWh 2478.91 2478.91 2478.91
11 Specific consumption of coal Kg/kWh 0.70 0.70 0.70
12 Rate of energy from Coal Paisa/kWh 237.04 260.38 262.36
13 Variable Cost Paisa/kWh 242.83 267.76 269.74
14 Previous Tariff Order Paisa/kWh 183.73 185.88 188.07




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Tuticorin TPS:
Table 167: Variable Cost for Tuticorin TPS
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 1050 1050 1050
2 Gross Station Heat Rate Kcal/kWh 2500 2453 2453
3 Specific fuel oil consumption ml/kWh 2 2 2
4 Average calorific value of oil Kcal/l 10547 10547 10547
5
Average calorific value of
Coal
Kcal/Kg 3485 3485 3485
6 Weighted average price of oil Rs./Kl 29839 37653 37653
7 Average landed cost of coal Rs./MT 3130 3814 3814
8 Rate energy charges from Oil Paisa/kWh 5.97 7.53 7.53
9 Heat contributed from Oil Kcal/kWh 21.09 21.09 21.09
10 Heat contributed from Coal Kcal/kWh 2478.91 2431.91 2431.91
11 Specific consumption of coal Kg/kWh 0.71 0.70 0.70
12 Rate of energy from Coal Paisa/kWh 242.78 296.04 290.85
13 Variable Cost Paisa/kWh 248.75 303.57 298.39
14 Previous Tariff Order Paisa/kWh 200.52 202.83 205.18

North Chennai TPS:
Table 168: Variable Cost for North Chennai TPS
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 630 630 630
2 Gross Station Heat Rate Kcal/kWh 2466 2393 2393
3 Specific fuel oil consumption ml/kWh 2 2 2
4 Average calorific value of oil Kcal/l 10340.60 10340.60 10340.60
5
Average calorific value of
Coal
Kcal/Kg 3728 3728 3728
6 Weighted average price of oil Rs./Kl 29753 39997 39997
7 Average landed cost of coal Rs./MT 2559 2939 2939
8 Rate energy charges from Oil Paisa/kWh 5.95 8.00 8.00
9 Heat contributed from Oil Kcal/kWh 20.68 20.68 20.68
10 Heat contributed from Coal Kcal/kWh 2445.32 2372.32 2372.32
11 Specific consumption of coal Kg/kWh 0.66 0.64 0.64
12 Rate of energy from Coal Paisa/kWh 184.21 195.51 204.37
13 Variable Cost Paisa/kWh 190.16 203.51 212.37
14 Previous Tariff Order Paisa/kWh 148.99 150.81 152.63


230 | P a g e

Provisional Tariff for New Thermal Power Stations:
6.1.67 The Commission in Previous Tariff Order approved the Provisional Tariff for NCTPS-
Stage-II Unit-1 & 2 and MTPS Stage-III. The Tariff approved by the Commission is
tabulated below:
Table 169: Provisional Tariff approved for New Thermal Power Stations
(Rs./ kWh)
S. No Stations FY 2011-12 FY 2012-13
1 NCTPS (Stage-II) 2.52 2.22
2 MTPS (Stage-III) 2.96 2.68
6.1.68 The Commission observed that TANGEDCO in its Petition has not submitted the cost on
account of New Thermal Power Stations. However in reply to datagaps raised by the
Commission, TANGEDCO submitted the net energy generated and cost incurred on
account of new generating stations during FY 2011-12 and FY 2012-13. As discussed in
Chapter of Energy Availability (Chapter-4), none of the new Thermal Power Stations
have been commissioned as on date, the Commission has considered the energy rates for
both NCTPS (Stage-II) and MTPS (Stage-III) in accordance with the rates approved for
FY 2011-12 in Previous Tariff Order considering FY 2012-13 as first year of operation.
6.1.69 The Commission directs TANGEDCO to submit separate Petition for approval of Capital
Cost and Generation Tariff for new Generating Stations.
Variable cost for Gas Turbine Power Stations:
a. Heat Rate:
6.1.70 The Commission in Previous Tariff Order approved the heat rate for all Gas Turbine
Stations except BBGTPS as per the norms specified in the TNERC Tariff Regulations,
2005, i.e., 1850 kcal/ kWh. For BBGTPS, the Commission accepted the Heat Rate
proposed by TNEB, i.e., 3230 kcal/ kWh.
6.1.71 TANGEDCO in its Petition has submitted the following Station Heat Rate for Gas
Turbine Power Stations:
Table 170: Heat rate for various Stations as submitted by TANGEDCO
(Kcal/ kWh)
S. No Stations FY 11 FY 12 FY 13
1 KGTPS 1880 1850 1850
2 TGTPS 1845 1850 1850

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S. No Stations FY 11 FY 12 FY 13
3 BBGTPS 3436 3219 3219
4 VGTPS-I 1790 1850 1850
5 VGTPS-II 1850 1850

Commissions View:
6.1.72 The Commission observed that, TANGEDCO has submitted higher heat rate for KGTPS
and BBGTPS in its Petition. The Commission already relaxed the norm for BBGTPS in
previous Tariff Order. Therefore, the Commission has allowed the heat rate for KGTPS
and BBGTPS for FY 2010-11 according to the norms approved by the Commission in
Previous Tariff Order.
6.1.73 As regards TGTPS and VGTPS-I, the Commission observed that the actual Station Heat
Rate in FY 2010-11 as submitted in the Petition is within the approved limits specified by
the Commission in Previous Tariff Order. Hence the Commission has approved the same
for TGTPS and VGTPS-I.
6.1.74 In FY 2011-12 and FY 2012-13, TANGEDCO has proposed the SHR as per the norms
specified in the Regulations. For BBGTPS, TANGEDCO has proposed 3219 kcal/ kWh
which is acceptable by the Commission.
6.1.75 The Station Heat Rate as approved by the Commission in this Order is tabulated below:
Table 171: Station Heat Rate
(Kcal/ kWh)
Stations
FY 2010-11 FY 2011-12
Previous
Tariff Order
Petition Commission
Previous
Tariff
Order
Petition Commission
KGTPS 1850 1880 1850 1850 1850 1850
TGTPS 1850 1845 1845 1850 1850 1850
BBGTPS 3230 3436 3230 3230 3219 3219
VGTPS-I 1850 1790 1790 1850 1850 1850
VGTPS-II 1850 1850 1850

Stations
FY 2012-13
Previous Tariff
Order
Petition Commission
KGTPS 1850 1850 1850
TGTPS 1850 1850 1850

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Stations
FY 2012-13
Previous Tariff
Order
Petition Commission
BBGTPS 3230 3219 3219
VGTPS-I 1850 1850 1850
VGTPS-II 1850 1850 1850

b. Gross Calorific Value:
6.1.76 The Commission in the Previous Tariff Order approved the calorific value of Gas as
10000 Kcal/SCM whereas for Naptha used in BBGTPS, the Commission approved the
Calorific value of 10572 kcal/ kg.
6.1.77 TANGEDCO has submitted Naptha as the main fuel and HSD as the start-up fuel used in
BBGTPS. In other stations only gas is being used as fuel. TANGEDCO has submitted the
following calorific value for the usage of gas and Naptha in its Stations:
Table 172: Calorific Value as submitted by TANGEDCO in the Petition
Sl. No. Station Fuel used Unit 2010-11 2011-12 2012-13
1 TGTPSl Gas Kcal/ SCM 9590 9271 10000
2 Kuttalam Gas Kcal/ SCM 9498 9630 10000
3 Valuthur I Gas Kcal/ SCM 8765 9179 10000
4
Valuthur II Gas Kcal/ SCM 0 8186 10000
5 BBGTPS
Naptha Kcal/ Kg 10572 10572 10572
HSD Kcal/ Kg 10249 10249 10249

Commissions View:
6.1.78 The Commission in the last Tariff Order observed that in respect of gas fired generating
station, the TNEB make payment at the rate for 1000 SCM for 10000 Kcal / SCM and
whenever the GCV is less than 10000 Kcal / SCM, proportionate rebate is allowed.
Therefore, the Commission has considered GCV as 10000 Kcal/ SCM for arriving at the
quantity of coal consumed from FY 2010-11 to FY 2012-13.
6.1.79 The Calorific value as approved by the Commission for various stations is as under:




233 | P a g e

Table 173: Calorific Value from FY 2010-11 to FY 2012-13
Station Unit
Fuel
Used
2010-11 2011-12
Last
TO
Petition Approved
Last
TO
Petition Approved
TGTPS
Kcal/
SCM
Gas 10000 9590 10000 10000 9271
10000
Kuttalam
Kcal/
SCM
Gas 10000 9498
10000
10000 9630
10000
Valuthur I
Kcal/
SCM
Gas 10000 8765
10000
10000 9179
10000
Valuthur
II
Kcal/
SCM
Gas 10000 0 0 10000 8186
10000
BBGTPS
Kcal/
Kg
Naptha 10572 10572 10572 10572 10572 10572
Kcal/
Kg
HSD 10249 10249 10249 10249

Station Unit
Fuel
Used
2012-13
Last TO Petition Approved
Kovilkappal Kcal/ SCM
Gas
10000 10000 10000
Kuttalam Kcal/ SCM
Gas
10000 10000 10000
Valuthur I Kcal/ SCM
Gas
10000 10000 10000
Valuthur II Kcal/ SCM
Gas
10000 10000 10000
BBGTPS
Kcal/ Kg
Naptha
10572 10572 10572
Kcal/ Kg
HSD
10249 10249

c. Price of fuel:
6.1.80 The Commission in the Previous Tariff Order approved the following prices of fuel:
Table 174: Price of fuel approved by the Commission
S. No Stations Units FY 2010-11 FY 2011-12 FY 2012-13
1 KGTPS Rs./ SCM 7.92 8.77 8.77
2 TGTPS Rs./ SCM 7.92 8.77 8.77
3 BBGTPS Rs./ kg 47.92 50.32 52.83
4 VGTPS-I Rs./ SCM 8.78 8.79 8.79
5 VGTPS-II Rs./ SCM 7.76 8.79 8.79


234 | P a g e

6.1.81 TANGEDCO has submitted the following prices of fuel from FY 2010-11 to FY 2012-
13:
Table 175: Price of fuel as submitted by TANGEDCO
Stations Fuel Used Units FY 2010-11 FY 2011-12 FY 2012-13
KGTPS Gas Rs./ SCM 8.55 8.55 8.55
TGTPS Gas Rs./ SCM 8.55 8.55 8.55
BBGTPS
Naptha Rs./ kg 33.44 40.44 40.44
HSD Rs./ Kg 37.60 82.47 43.10
VGTPS-I Gas Rs./ SCM 8.55 8.93 8.93
VGTPS-II Gas Rs./ SCM 8.93 8.93

Commissions View:
6.1.82 As regards FY 2010-11, TANGEDCO has submitted the actual price of fuel consumed
during FY 2010-11. The Commission has considered the same for all GTPS. For
BBGTPS, Naptha is used as the fuel and HSD is used in order to meet the technical
requirement of the power plant. The Commission has considered the weighted average
cost on the basis of consumption and the price of Naptha and HSD. Though this power
station was established as a peaking power station, in view of prohibitive naptha prices, it
is not being operated even during peak hours. The generation from this station is very
limited. In view of this the auxiliary consumption also cannot be estimated accurately.
This station is being operated as synchronous condenser as facility was available for
operating the gas turbines as synchronous condenser. The gas turbines is started and
brought upto full speed after which the unit is synchronized with the grid. Thereafter the
fuel supply is cut off and the gas turbine slows down and finally gets decoupled from the
generator through the operation of a clutch. The generator continues to be in synchronism
with the grid but operates as synchronized condenser. In this process it supplies VAR to
system for compensation. It is understood that this kind of operation of Basin Bridge Gas
Turbine Station has resulted in improving the voltage profile in the surrounding area and
also improved the real power generation of North Chennai TPS. The operation of the
Basin Bridge Gas Turbine Station as synchronous condensers will have to be continued
to further optimize the VAR Compensation to the system.
6.1.83 As regards FY 2011-12 and FY 2012-13, the Commission has considered the submission
of TANGEDCO for all Gas Turbine Power Stations.



235 | P a g e


6.1.84 The Price of fuel as approved by the Commission is tabulated below:
Table 176: Price of fuel approved by the Commission
Stations Fuel Used Units
FY 2010-11 FY 2011-12
Previous
Tariff
Order
Petition Commission
Previous
Tariff
Order
Petition Commission
KGTPS Gas
Rs./
SCM
7.92 8.55 8.55 8.77 8.55 8.55
TGTPS Gas
Rs./
SCM
7.92 8.55 8.55 8.77 8.55 8.55
BBGTPS
Naptha Rs./ kg 47.92 33.44 33.44 50.32 40.44 40.44
HSD Rs./ Kg 37.60 37.60 82.50 82.50
VGTPS-I Gas
Rs./
SCM
8.78 8.55 8.55 8.79 8.93 8.93
VGTPS-
II
Gas
Rs./
SCM
7.76 8.79 8.93 8.93

Stations Fuel Used Units
FY 2012-13
Previous
Tariff Order
Petition Commission
KGTPS Gas Rs./ SCM 8.77 8.55 8.55
TGTPS Gas Rs./ SCM 8.77 8.55 8.55
BBGTPS
Naptha Rs./ kg 52.83 40.44 40.44
HSD Rs./ Kg 43.10 43.10
VGTPS-I Gas Rs./ SCM 8.79 8.93 8.93
VGTPS-II Gas Rs./ SCM 8.79 8.93 8.93

d. Variable cost for various GTPS:
6.1.85 Based upon the above discussion, the variable cost as approved for various Gas Turbine
Stations is tabulated as under:
Table 177: Variable Cost for KGTPS
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 101 101 101
2 Gross Station Heat Rate Kcal/kWh 1850 1850 1850
3 Average calorific value of gas Kcal/SCM 10000 10000 10000
4 Average Cost of Gas Rs./ SCM 8.55 8.55 8.55
5 Rate of energy from Gas Ps/ kWh 171.44 169.42 168.21
6 Net Generation MU 157 457 592

236 | P a g e

S. No Description Unit 2010-11 2011-12 2012-13
7
Total Cost excluding
Transportation
Rs. Crore 26.99 77.48 99.61
8 Transportation Cost Rs. Crore 7.11 7.11 7.11
9 Total Cost Rs. Crore 34.09 84.59 106.71
10 Variable Cost Ps/ kWh 216.59 184.97 180.21

Table 178: Variable Cost for TGTPS
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 107.88 107.88 107.88
2 Gross Station Heat Rate Kcal/kWh 1845 1850 1850
3 Average calorific value of gas Kcal/SCM 10000 10000 10000
4 Average Cost of Gas Rs./ SCM 8.55 8.55 8.55
5 Rate of energy from Gas Ps/ kWh 168.07 168.28 160.77
6 Net Generation MU 610 650 611
7
Total Cost excluding
Transportation
Rs. Crore 102.44 109.31 102.73
8 Transportation Cost Rs. Crore 4.83 4.83 4.83
9 Total Cost Rs. Crore 107.27 114.14 107.56
10 Variable Cost Ps/ kWh 175.99 175.72 176.12

Table 179: Variable Cost for Valuthur-I
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 95 95 95
2 Gross Station Heat Rate Kcal/kWh 1790 1850 1850
3 Average calorific value of gas Kcal/SCM 10000 10000 10000
4 Average Cost of Gas Rs./ SCM 8.55 8.93 8.93
5 Rate of energy from Gas Ps/ kWh 162.03 185.77 167.06
6 Net Generation MU 531 629 614
7
Total Cost excluding
Transportation
Rs. Crore 85.99 116.81 107.33
8 Transportation Cost Rs. Crore 1.79 1.79 1.79
9 Total Cost Rs. Crore 87.78 118.60 109.12
10 Variable Cost Ps/ kWh 165.40 188.62 177.70

Table 180: Variable Cost for Valuthur-II
S. No Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 92.2 92.2

237 | P a g e

S. No Description Unit 2010-11 2011-12 2012-13
2 Gross Station Heat Rate Kcal/kWh 1850 1850
3 Average calorific value of gas Kcal/SCM 10000 10000
4 Average Cost of Gas Rs./ SCM 8.93 8.93
5 Rate of energy from Gas Ps/ kWh 161.57 176.13
6 Net Generation MU 465 593
7
Total Cost excluding
Transportation
Rs. Crore 75.08 104.25
8 Transportation Cost Rs. Crore 1.79 1.79
9 Total Cost Rs. Crore 76.86 106.04
10 Variable Cost Ps/ kWh 165.42 178.77

Table 181: Variable Cost for BBGTPS
S.No. Description Unit 2010-11 2011-12 2012-13
1 Capacity MW 120 120 120
2 Gross Station Heat Rate
kcal/
kWh
3230 3219 3219
3 Average calorific value of gas kcal/ kg 10569 10566 10564
4 Average Cost of Naptha Rs./ kg 33 41 41
5 Rate of energy from Naptha Ps/ kWh 1028.58 1262.00 1278.15
6 Net Generation MU 52 44 58
7 Total Variable Cost Rs. Crore 53 55 75
* Please refer to the detailed paragraph for BBGTPS given above
Hydro Generating Stations:
6.1.86 The Commission in Previous Tariff Order determined the Primary Energy charges for
hydro generating stations on account of water charges, lubricants etc.. The Primary
energy charges as allowed by the Commission in the Previous Tariff Order for various
Hydro generating circles are tabulated as under:
Table 182: Primary Energy allowed by the Commission in Previous Tariff Order
(Rs. Crore)
S. No
Generation
Circles
FY 2010-11 FY 2011-12 FY 2012-13
1 Erode 0.13 0.13 0.13
2 Kundah 0.01 0.01 0.01
3 Kadamparai 0.16 0.16 0.16
4 Tirunelveli 0.21 0.21 0.22


238 | P a g e

6.1.87 TANGEDCO has not discussed the Primary energy charges on account of hydro
generating circles in the Petition. However in the formats, TANGEDCO has submitted
the Primary Energy Charges which are tabulated below:
Table 183: Primary Energy Charges submitted by TANGEDCO
(Rs. Crore)
S. No
Generation
Circles
FY 2010-11 FY 2011-12 FY 2012-13
1 Erode 0.03 0.04 0.04
2 Kundah 0.22 0.22 0.23
3 Kadamparai 0.00 0.00 0.00
4 Tirunelveli 0.25 0.25 0.26

Commissions View:
6.1.88 The Commission observed that the total Primary Energy Charges as submitted by
TANGEDCO are almost same as that approved by the Commission in Previous Tariff
Order. Therefore the Commission has decided to allow Primary charges towards Hydro
generating circles as submitted by TANGEDCO in the Petition. The Primary Energy
Charges as allowed by the Commission in this Order are tabulated below:
Table 184: Primary Energy Charges approved by the Commission
(Rs. Crore)
S. No
Generation
Circles
FY 2010-11 FY 2011-12
Last
Order
Petition Commission Last Order Petition Commission
1 Erode 0.13 0.03 0.03 0.13 0.04 0.04
2 Kundah 0.01 0.22 0.22 0.01 0.22 0.22
3 Kadamparai 0.16 0.00 0.00 0.16 0.00 0.00
4 Tirunelveli 0.21 0.25 0.25 0.21 0.25 0.25

S. No
Generation
Circles
FY 2012-13
Last
Order
Petition Commission
1 Erode 0.13 0.04 0.04
2 Kundah 0.01 0.23 0.23
3 Kadamparai 0.16 0.00 0.00
4 Tirunelveli 0.22 0.26 0.26


239 | P a g e

Provisional Tariff for New Hydro Generating Stations:
6.1.89 TANGEDCO has not proposed any Tariff on account of new hydro generating stations.
The Commission for the purpose of calculating the cost on account of energy available
from new hydro generating stations has considered Rs. 3.00 per kWh..
6.1.90 The Commission directs TANGEDCO to submit separate Petition for approval of Capital
Cost and determination of Tariff for New Hydro Generating Stations before next Tariff
determination exercise.

Wind Generating Stations:
6.1.91 The Commission in Previous Tariff Order ruled that in the order No.3 dated 15-05-2006,
the Commission has determined a tariff of Rs.2.75 / unit for the wind power projects
commissioned, and to be commissioned based on agreements executed prior to May 15,
2006. Accordingly the Commission allowed the rate of Rs. 2.75/ Unit in Previous Tariff
Order.
6.1.92 TANGEDCO in its Petition has not discussed the energy charges on account of wind
energy. Also in the formats attached along with the Petition, TANGEDCO has submitted
only capacity charges.
Commissions View:
6.1.93 . The wind mills of TANGEDCO were installed in between 1986 and 1993.Therefore rate
of Rs. 2.75 per Unit is applicable for TANGEDCO owned Wind Mills. .
6.1.94 The Commission is of the view that since the TANGEDCO owned Wind Mills are not
operating properly and the cost of generation is very high, TANGEDCO should either
shutdown the Wind Mills or re-power the machines. The high cost of generation on
account of usage of old machines cannot be passed on to the consumers.


240



Summary for Own Generation:

Table 185: Summary for Own Generation in FY 2010-11
S. No Particulars
FY 2010-11
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total Cost Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total Cost
MU
Rs.
Crore
Rs./ kWh Rs. Crore Rs. Crore MU
Rs.
Crore
Rs./ kWh Rs. Crore Rs. Crore
1 ETPS 1176 157 3.61 425 581 1176 125 3.05 358 483
2 TTPS 6523 246 2.86 1865 2110 6523 180 2.49 1622 1802
3 MTPS 5549 157 2.55 1414 1571 5549 123 2.43 1347 1470
4 NCTPS 4110 234 2.10 864 1098 4110 216 1.90 782 998
I
Subtotal-
Thermal
17358 793 4568 5361 17358 644 4110 4753

5 KGTPS 157 42 1.99 31 74 157 12 2.17 34 46
6 BBGTPS 52 40 15.24 79 118 52 49 10.29 53 102
7 TGTPS 649 36 1.51 98 134 610 38 1.76 107 145
8 Valuthur -I 531 64 1.70 90 154 531 46 1.65 88 134
9 Valuthur-II 0
II Subtotal-Gas 1389 182 298 480 1349 146 282 428

10 Erode HEP 767 76 0.00 0 76
4515
64 0 64
11 Kadamparai HEP 1303 41 0.00 0 41 36 0 36
12 Kundah HEP 2155 96 0.00 0 97 83 0 83
13 Tirunelveli HEP 860 43 0.00 0 44 36 0 36
III Subtotal-Hydro 5085 257 0.00 1 257 4515 219 0 1 220

241



S. No Particulars
FY 2010-11
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total Cost Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total Cost
MU
Rs.
Crore
Rs./ kWh Rs. Crore Rs. Crore MU
Rs.
Crore
Rs./ kWh Rs. Crore Rs. Crore

14
Tirunelveli &
Udmalpet
13 15.15 20 20 13 0 2.75 3 3
IV Subtotal-Wind 13 20 20 13 0 3 3
15
Total
Generation
23845 1231 4887 6118 23233 1009 4396 5404

Table 186: Summary for Own Generation in FY 2011-12
S. No Particulars
FY 2011-12
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
MU Rs. Crore
Rs./
kWh
Rs.
Crore
Rs. Crore MU Rs. Crore Rs./ kWh Rs. Crore Rs. Crore
1 ETPS 851 252 3.56 303 555 851 95 3.12 266 361
2 TTPS 7018 321 3.19 2236 2557 7018 207 3.04 2130 2337
3 MTPS 6235 187 2.51 1562 1749 6235 142 2.68 1669 1811
4 NCTPS 4621 365 2.05 946 1312 4621 238 2.04 940 1178
5 MTPS (Stage-III) 259 2.81 73 73
I
Subtotal-
Thermal
18984 1126 5120 6245 18724 682 5006 5688

6 KGTPS 382 56 1.93 74 130 457 43 1.85 85 128
7 BBGTPS 90 70 17.50 157 228 44 52 12.62 55 107

242



S. No Particulars
FY 2011-12
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
MU Rs. Crore
Rs./
kWh
Rs.
Crore
Rs. Crore MU Rs. Crore Rs./ kWh Rs. Crore Rs. Crore
8 TGTPS 654 62 1.67 110 172 650 39 1.76 114 153
9 Valuthur -I 601
104 3.25 195 300
629 70 1.89 119 189
10 Valuthur-II 444 465 0 1.65 77 77
II Subtotal-Gas 2172 293 536 829 2244 204 450 654

11 Erode HEP 846 100 0.00 0.04 100
4701
69 0 69
12 Kadamparai HEP 1279 60 0.00 0.00 60 39 0 39
13 Kundah HEP 2497 141 0.00 0.22 142 86 0 87
14 Tirunelveli HEP 939 61 0.00 0.25 62 43 0 43
III Subtotal-Hydro 5561 363 0.51 363 4700.9431 237 1 237

15
Tirunelveli &
Udmalpet
20 0 17.78 36 36 11.31 0 2.75 3 3
IV Subtotal-Wind 20 0 36 36 11 0 3 3
16
Total-Own
Generation
26737 1781 5692 7473 25680 1123 5459 6582






243



Table 187: Summary for Own Generation in FY 2012-13
S. No Particulars
FY 2012-13
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
MU Rs. Crore
Rs./
kWh
Rs.
Crore
Rs. Crore MU Rs. Crore Rs./ kWh Rs. Crore Rs. Crore
1 ETPS 1361 307 3.44 468 775 680 196 3.08 209 405
2 TTPS 6896 414 3.45 2379 2793 6938 227 2.98 2070 2297
3 MTPS 5971 237 2.76 1647 1884 5960 154 2.70 1608 1761
4 NCTPS 4184 466 2.22 927 1393 4391 258 2.12 932 1190
5
NCTPS (Stage-
II) (Unit-I)
2130

3.33 709 709
1760 2.52 444 444
6
NCTPS (Stage-
II) (Unit-2)
3030 2.52 763 763
7 MTPS Stage-III
3528

3.16 1113 1113
1913 2.96 566 566
8 MTPS Stage-III 1515 2.96 448 448
I
Subtotal-
Thermal
24070 1424 7244 8668 26186 834 7041 7875

9 Kuttalam 590 73 1.81 107 180 592 48 1.80 107 154
10 Basin 121 96 17.92 217 313 58 56 12.78 75 130
11 TGTPS 581 84 1.72 100 184 611 43 1.76 108 151
12 Valuthur -I 611
144 3.53 216 360
614 86 1.78 109 195
13 Valuthur-II 592 593 0 1.79 106 106
II Subtotal-Gas 2495 397 640 1037 2469 232 504 736

14 Erode HEP 916 132 0.00 0 132
5110
97 0 97
15 Kadamparai HEP 1385 77 0.00 0 77 44 0 44

244



S. No Particulars
FY 2012-13
Petition Commission
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
Quantum
Fixed
Cost
Variable
Cost
Variable
Cost
Total
Cost
MU Rs. Crore
Rs./
kWh
Rs.
Crore
Rs. Crore MU Rs. Crore Rs./ kWh Rs. Crore Rs. Crore
16 Kundah HEP 2706 186 0.00 0 186 95 0 96
17 Tirunelveli HEP 1018 73 0.00 0 73 49 0 49
18
New Hydro
addition
132 3.00 40 40
III Subtotal-Hydro 6025 469 1 469 5242 285 40 325

19
Tirunelveli &
Udmalpet
21 0 24.66 52 52 11.31 2.75 3 3
IV Subtotal-Wind 21 0 52 52 11 0 3 3 3
20
Total-Own
Generation
32611 2290 7936 10226 33908 1351 7589 8939



245



7 POWER PURCHASE COST FROM OTHER SOURCES
Merit Order Ranking:
7.1.1 The Commission in accordance with Regulation 75 (1) of TNERC (Terms and
Conditions for Determination of Tariff) Regulations, 2005 has determined the power
purchase cost for various sources from which energy is available in FY 2012-13.
Regulation 75(1) of the TNERC (Terms and Condition for Determination of Tariff)
Regulation, 2005 states as under:
75. Cost of Power Purchase
1. The Distribution Licensee shall procure power on least cost basis and strictly on
Merit Order Despatch and shall have flexibility to procure power from any
source in the country.
7.1.2 For the purpose of determination of power purchase cost, the Commission has followed
the methodology given below:
a. Firstly, the total energy calculated by the Commission in this Order has been
considered for Must-Run Power Plants. The total energy available from Must-Run
Power Plants is given below:
Table 188: Energy available from Must-Run Power Plants during FY 2012-13
(MU)
Name of Power
Plant
Petition Commission
Kaiga 1178 1178
MAPS 1508 1508
Additions
Kaiga APS 0 0
Kudankulam 3245 1716
MAPS
Additional 256 518
Total 6187 4920


b. Secondly, the total energy calculated by the Commission in this Order has been
considered for TANGEDCOs own generating stations in FY 2012-13 whichis
tabulated below:

246



Table 189: Energy available from TANGEDCOs own generating stations during
FY 2012-13
(MU)
Power Stations Petition Commission
Thermal Power
Stations
24070 26186
Gas Turbine
Power Stations
2495 2469
Hydel
Generation
6025 5242
Wind Mills
21 11
Total
32611 33908

c. Thirdly, the Commission has considered the energy available from CPP and Non-
Conventional Energy Sources such as Private Wind Mills, Solar, Hydro,
Cogeneration etc. The total energy available from various Nonconventional energy
sources have been given below:
Table 190: Energy available from NCES and CPP during FY 2012-13
(MU)
S. No Power Plant
FY 2012-13
Last Year
Order
Petition Commission
1 CPP 371 580 582
2 Solar 0 11 11
3 Wind 10487 9988 5408
4 Cogeneration 1276 1469 1202
5 Biomass 111 120 56
6 Total Quantum 12245 12168 7258

d. After factoring in the energy available from all the above listed sources, the
Commission has allowed the remaining energy to be purchased as per the energy
requirement calculated by the Commission on Merit Order Ranking basis. The
energy required to be purchased on Merit Order Despatch basis is given below:




247



Table 191: Balance energy required to be purchased through Merit Order Ranking
for FY 2012-13

Particulars Energy (MU)
Energy requirement
70784
Less: Energy available through
Must-Run Plants
4920
Less: Net Energy Available
through own generation
33908
Energy to be purchased in MU
31957
Less: Energy available through
NCES and CPP
7258
Energy required to be
purchased through Merit
Order Ranking
24698

e. The Commission has prepared the Merit Order Despatch on the basis of variable cost
of various power plants. The Commission has considered Merit Order Despatch upto
the 24698 MU on the basis of calculation shown above. The power plants will be
scheduled in accordance with the increasing trend of variable cost. On the basis of
variable cost, following power plants will get despatched in accordance with Merit
Order Ranking:
Table 192: Merit Order Ranking for available sources

S. No Other Plants
Variable Cost
(Rs./ kWh)
Energy
Available (MU)
Cumulative
Energy (MU)
Energy to be
purchase as
per MOD
(MU)
Cumulative
Energy as
per MOD
(MU)
Power Plants required to be desptached as per MOD
1
NTPC SR (I
& II) 1.68 4164 4164 4164 4164
2 NLC-TS-I 1.73 3066 7230 3066 7230
3 Penna 1.84 375 7605 375 7605
4 ABAN 1.86 810 8415 810 8415
5
NLC-TS-I
Expansion 1.91 1624 10039 1624 10039
6
NTPC SR
(III) 1.92 1125 11164 1125 11164
7
NLC-TS-II
(Stage-I) 1.95 3272 14436 3272 14436

248



S. No Other Plants
Variable Cost
(Rs./ kWh)
Energy
Available (MU)
Cumulative
Energy (MU)
Energy to be
purchase as
per MOD
(MU)
Cumulative
Energy as
per MOD
(MU)
8
NLC-TS-II
Expansion 2.00 1318 15754 1318 15754
9 Simahadri 2.33 1415 17169 1415 17169
10
NTPC -
Talcher II 2.38 3705 20874 3705 20874
11 ST-CMS 2.52 1795 22669 1795 22669
12
NTPC-TNEB
(JV) 2.90 2896 25565 2029 24698

f. The fixed cost has been allowed for the Power Plants which are not scheduled as per
Merit Order Despatch shown above. These Power Plants are listed below:
i. NTPC-Eastern Region (NTPC-ER)
ii. PPN
iii. GMR
iv. Samalpatti
v. Madurai
g. The Merit Order Despatch shown above has been considered assuming an idealistic
scenario in which the energy is available from all the Power Plants listed in the Merit
Order Ranking throughout the year. However due to corridor constraints, power flow
from other regions may become difficult and other power plants may also get dispatched.
Also with lifting of R&C, the demand may increase and go beyond the estimates
resulting in dispatch of other available sources. TANGEDCO shall follow the MOD and
try to optimize the power purchase cost on the basis of Merit Order Ranking shown
above. For traders, TANGEDCO is directed to take prior approval of the Commission
before purchasing energy beyond the quantum and rate specified by the Commission for
FY 2012-13 in this Tariff Order.
Power Purchase Cost:
7.1.3 The Commission in accordance with Regulation 75 of TNERC (Terms and Conditions
for Determination of Tariff) Regulations, 2005 has determined the power purchase cost
for various sources from which energy is available in FY 2012-13. Regulation 75 of the
TNERC (Terms and Condition for Determination of Tariff) Regulation, 2005 states as
under:



249



75. Cost of Power Purchase

3. The cost of power purchased from Central Generating Company shall be worked
out based on tariff determined by the Central Electricity Regulatory Commission.
4. The cost of power purchased from IPPs shall be considered based on Power
Purchase Agreement.
5. In case of power purchased from Captive Generators and other non conventional
energy sources, the cost shall be worked out as per the policy approved by the
Commission.
Power Purchase from Central Generating Stations:
7.1.4 The Commission in the previous Tariff Order adopted the tariff proposed by NTPC in its
Tariff Petitions before the CERC with 5% escalation on the energy charges to take care
of fuel cost adjustments for the purpose of estimating power from various CGS Stations
(except nuclear stations). The Commission also estimated the Transmission charges
payable to PGCIL with reference to the Petition submitted before CERC. For upcoming
power projects the Commission referred to the similar capacity stations at same locations.
For new nuclear projects, the Commission assumed tariff at the rate of Rs. 3.50/ Unit.
The Power Purchase cost as allowed by the Commission in Previous Tariff Order has
been tabulated below:

Table 193: Power Purchase Quantum and Cost as approved by the Commission in
Previous Tariff Order
S. No Stations
2010-11 2011-12 2012-13
Quantum Cost Quantum Cost Quantum Cost
MU
Rs.
Crore
MU
Rs.
Crore
MU
Rs.
Crore
CGS
1
Neyveli TS-
I
3250 998.96 2996 1007.51 2996 1143.62
2
Neyveli TS-
II
2842 713.07 2842 751.87 2842 760.2
3
Neyveli TS-
Expansion
1434 416.63 1434 461.06 1434 474.9
4
NTPC SR I
& II
3913 807.72 3913 818.08 3913 824.68

250



S. No Stations
2010-11 2011-12 2012-13
Quantum Cost Quantum Cost Quantum Cost
MU
Rs.
Crore
MU
Rs.
Crore
MU
Rs.
Crore
5
NTPC SR
III
965 201.92 965 202.19 965 201.62
6
NTPC
Talcher-II
3636 723.94 3577 719.03 3577 720
7
NTPC ER
& Spl
allotment
743 169.71 743 170.63 743 171.69
8
NTPC
Kayankulam
1076 796.29 926 703.78 926 683.02
9 Maps 1431 276.34 1431 276.34 1431 276.34
10 Kaiga 911 291.68 911 291.68 911 291.68

CGS
Additions

11
NLC TS II
Expansion
299 91.19 1750 565.59 1750 596.59
12
NTPC
Simhadri
0 0 872 284.86 1026 320.14
13
NTPC -
TNEB JV at
Vallur
0 0 1615 397.29 6510 1601.46
14
NLC -
TNEB JV at
Tuticorin
0 0 0 0 1688 492.9
15 Kaiga APS 0 0 221 77.35 221 77.35
16
Kudankulam
APS
848 296.8 3137 1097.95 3766 1318.1
17
Kalpakkam
PFBR
0 0 0 0 1024 358.4
18 Power Grid 0 512 0 538 0 564.9
Total CGS 21348 6296.26 27333 8363.21 35723 10877.6

7.1.5 TANGEDCO in its Petition submitted that the power purchase expenditure for FY 2010-
11 is based upon the actual expenditure during the year. TANGEDCO further submitted
that the projection of power purchase cost during the current year has been made based
on the availability of power during FY 2010-11 from these stations. TANGEDCO also
submitted that the energy forecast plan for FY 2011-12 and FY 2012-13 has been based

251



on detailed station-wise analysis of monthly energy sent out and the consequent energy
availability from generating stations during that period. TANGEDCO has referred to its
share from the CGS as notified by GOI for calculating energy availability. The power
purchase cost for the Central Generating Stations as projected by TANGEDCO is
tabulated below:
Table 194: Power Purchase Quantum and Cost as submitted by TANGEDCO in the
Petition
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Quantum Cost Quantum Cost Quantum Cost
MU
Rs.
Crore
MU
Rs.
Crore
MU Rs. Crore
1 NLC-TS-I 3066 630 3066 676 3066 692
2
NLC-TS-II
(Stage-I)
3042 532 3242 679 3272 708

NLC-TS-II
(Stage-II)
3
NLC-TS-I
Expansion 1509 453 1609 484 1624 494
4
NTPC SR (I &
II) 4039 806 4139 897 4164 932
5 NTPC SR (III) 1024 262 1105 302 1125 311
6 NTPC ER 735 224 885 323 897 340
7
NTPC - Talcher
II 3664 909 3690 1045 3705 1061
8 Kayankulam 854 786 250 369 0 0
9 MAPS 1398 277 1498 306 1508 321
10 KAIGA 860 263 1107 347 1178 364
11 Simahadri 0 0 328 95 925 268
12 Kudankulam 0 0 333 100 3245 1022
13
NLC-TS-II
Expansion 0 0 1295 259 2135 427
14 MAPS (Addl.) 0 0 0 0 256 77
15 PGCIL SR&ER 0 457 0 480 0 504
16
NTPC-TNEB
(JV) 0 0 0 0 3465 1005
17 UI 1441 472 750 270 145 60
17 Total 21632 6071 23297 6632 30710 8586



252




Commissions View:
7.1.6 As regards FY 2010-11, the Commission has considered the expenses on account of
power purchase from CGS as submitted by TANGEDCO in the petition. The
Commission for the purpose of determination of power purchase cost from CGS has
referred to the Final Tariff Orders and Provisional Tariff Orders issued by Central
Electricity Regulatory Commission for various Central Generating Stations. The
Commission observed that TANGEDCO has submitted its share in MW out of the total
capacity (MW) of various Central Generating Stations vide its letter dated February 2,
2012. The total share as submitted by TANGEDCO is tabulated below:
Table 195: Share of TANGEDCO submitted in the Petition
(MW)
Stations Total Capacity Firm Share
Share from
unallocated capacity
NLC TS - I 600 475 0
NLC TS - II 1470 441 32
NLC TS I -
Expn. 420 193 33
NTPC SR (I &
II) 2100 470 73
NTPC ER 3440 135.12 0
NTPC SR (III) 500 118 18
NTPC - Talcher
II 2000 477 26
Kayankulam 360 0 0
MAPS 440 327 4
Kaiga 880 195.5 32
Simahadri 1000 99 18
Kudankulam 2000 925 0
NLC TS-II 500 230 0
MAPS Addl. 500 167 0

7.1.7 CERC has issued provisional orders and final orders for the Second Control Period, i.e.,
from FY 2009-10 to FY 2013-14 for some Central Generating Stations whereas some are
still pending. The relevant details from the latest Order from FY 2009-10 to FY 2013-14
available on the website of CERC are tabulated below:


253




Table 196: Capacity charges for CGS as per CERC Orders
(Rs. Crore)
Particulars
Capacity
(MW)
Order FY 2011-12 FY 2012-13
NLC-II (Stage-I)
630 T.O. dated 27.06.2011 214.75 229.86
NLC-II (Stage-II)
840 T.O. dated 27.06.2011 298.74 306.13
NLC TS-I
Expansion
420 T.O. dated 31.08.2010 382.48 371.17
NTPC (SR)-
Ramagundam (I &
II)
2100 T.O. dated 6.7.2011 771.06 808.99
NTPC-SR Stage-III
500 T.O. dated 6.7.2011 328.01 326.05
NTPC Kayankulam
360 T.O. dated 6.7.2011 250.59 210.20
NTPC Talcher
Stage-II
2000 T.O. dated 29.12.2011 983.61 983.61
Simhadri
1000
Provisional T.O. dated
29.09.2011
567.06 567.06
7.1.8 In its revised submission dated February 1, 2012, TANGEDCO revised the capacity
charges and variable charges on account of CGS Stations. The Commission has
considered the same for further calculations. For approval of capacity charges for FY
2011-12 and FY 2012-13, the Commission has referred to the capacity charges from
those CERC Orders in respect of the stations where CERC has issued provisional orders
or final orders. For other stations, the Commission has approved the capacity charges for
FY 2011-12 as submitted by TANGEDCO in its revised submission based on 9 months
actuals and 3 months projections. Similarly for FY 2012-13, the Commission has
approved the capacity charges as submitted by TANGEDCO in the Petition for those
stations where no latest orders of CERC are available.
7.1.9 As regards variable charges, the Commission has considered the variable charges
submitted by TANGEDCO in its revised submission dated February 1, 2012. The
Commission has further considered an escalation of 5% over the variable charges
approved during FY 2011-12.
7.1.10 For new stations, the Commission observed that TANGEDCO has not submitted any
capacity charges. The Commission has considered the variable charges as submitted by
TANGEDCO in its Petition for new stations during FY 2011-12 and FY 2012-13.


254



7.1.11 For NTPC-ER, the Commission has considered only the fixed cost in FY 2012-13 in
accordance with Merit Order Ranking.
7.1.12 The power purchase cost approved by the Commission for various CGS Stations is
tabulated below:
Table 197: Total Power Purchase Cost in FY 2010-11 as approved by the Commission

S.
No
Particulars
Petition Commission
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
1 NLC-TS-I 3066 152 1.56 630 3066 152 1.56 630
2
NLC-TS-II
(Stage-I)
3042 106 1.40 532 3042 106 1.40 532
3
NLC-TS-II
(Stage-II)
4
NLC-TS-I
Expansion 1509 189 1.75 453 1509 189 1.75 453
5
NTPC SR (I
& II) 4039 151 1.62 806 4039 151 1.62 806
6
NTPC SR
(III) 1024 91 1.67 262 1024 91 1.67 262
7 NTPC ER 735 47 2.40 224 735 47 2.40 224
8
NTPC -
Talcher II 3664 270 1.75 909 3664 270 1.75 909
9 Kayankulam 854 117 7.83 786 854 117 7.83 786
10 MAPS 1398 0 1.98 277 1399 0 1.98 277
11 KAIGA 860 0 3.06 263 860 0 3.06 263
12 UI 1441 0 3.27 472 1441 0 3.27 472
13 Total 21633 1123 5613 21633 1123 5613

Table 198: Total Power Purchase Cost in FY 2011-12 as approved by the Commission
S.
No
Particulars
Petition Commission
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
1 NLC-TS-I 3066 140 1.75 676 3066 151 1.64 655
2
NLC-TS-II
(Stage-I)
3242 105 1.77 679 3242 165 1.86 769
3
NLC-TS-II
(Stage-II)

255



S.
No
Particulars
Petition Commission
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
4
NLC-TS-I
Expansion 1609 184 1.86 484 1609 211 1.82 505
5
NTPC SR (I
& II) 4139 149 1.81 897 4139 199 1.60 504
6
NTPC SR
(III) 1105 89 1.92 302 1105 89 1.83 862
7 NTPC ER 885 49 3.10 323 885 76 2.81 291
8
NTPC -
Talcher II 3690 243 2.17 1045 3690 247 2.26 324
9 Kayankulam 250 110 10.34 369 205 64 9.87 1082
10 MAPS 1498 0 2.04 306 1499 0 2.03 267
11 KAIGA 1107 0 3.13 347 1107 0 3.16 304
12 Simahadri 328 0 2.90 95 328 33 2.22 349
13 Kudankulam 333 0 3.00 100 0 0 0.00 106
14
NLC-TS-
IIExpansion 1295 0 2.00 259 0 0 0.00 0
15 UI 750 0 3.60 270 750 0 3.60 0
16 Total 23297 6152 21625 5784


Table 199: Total Power Purchase Cost in FY 2012-13 as approved by the Commission

S.
No
Particulars
Petition Commission
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
1 NLC-TS-I 3066 129 1.84 692 3066 129 1.73 658
2
NLC-TS-II
(Stage-I)
3272 105 1.84 708 3272 172 1.95 812
3
NLC-TS-II
(Stage-II)
4
NLC-TS-I
Expansion 1624 179 1.94 494 1624 205 1.91 516
5
NTPC SR (I
& II) 4164 147 1.89 932 4164 209 1.68 909
6
NTPC SR
(III) 1125 88 1.98 311 1125 89 1.92 305
7 NTPC ER 897 52 3.21 340 52 52

256



S.
No
Particulars
Petition Commission
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
Quantum
Capacity
Charges
Energy
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
8
NTPC -
Talcher II 3705 218 2.27 1061 3705 247 2.38 1127
9 Kayankulam 0 0 0.00 0 0 0 0.00 0
10 MAPS 1508 0 2.13 321 1508 0 2.13 321
11 KAIGA 1178 0 3.09 364 1178 0 3.31 390
12 Simahadri 925 0 2.90 268 1415 0 2.33 330
13 Kudankulam 3245 0 3.15 1022 1716 0 3.15 540
14
NLC-TS-II
Expansion 2135 0 2.00 427 1318 0 2.00 264
15
MAPS
(Addl.) 256 0 3.00 77 518 0 3.00 155
16
NTPC-TNEB
(JV) 3465 0 2.90 1005 2029 0 2.90 588
17 UI 145 0 4.14 60 0 0 0.00 04
18 Total 30710 8082 26638 7473

7.1.13 As regards PGCIL cost, the Commission has considered the same in accordance with the
submission of TANGEDCO from FY 2010-11 to FY 2012-13. The PGCIL Cost as
approved by the Commission from FY 2010-11 to FY 2012-13 in this Order is tabulated
below:
Table 200: PGCIL Cost approved by the Commission
(Rs. Crore)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition
Revised
Submission
Approved Petition
Revised
Submission
Approved Petition Approved
PGCIL
Cost
457 457 457 480 480 480 504 504


Power Purchase from Independent Power Producers:
7.1.14 The Commission in the Previous Tariff Order estimated the cost from IPPs with reference
to PPAs. The Power Purchase Cost corresponding to the Power Purchase Quantum of
IPPs as approved by the Commission is tabulated below:


257



Table 201: Power Purchase Quantum and Cost from Independent Power Producers as per
Previous Tariff Order
S.
No
Particulars
FY 2010-11
Quantum Fixed Charges
Variable
Charges
Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 1300 173 6.58 1028.45
b Samalpatti 300 100 7.04 310.64
c PPN 2259 297 3.13 1003.59
d Madurai 540 108 6.17 440.86
e ST-CMS 1809 259 1.48 526.06
f ABAN 850 0 2.26 192.1
g Penna 400 0 2.74 109.6
h Total
7458 936 3611

S.
No


Particulars


FY 2011-12
Quantum
Fixed
Charges
Variable
Charges
Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 300 174 6.91 382
b Samalpatti 150 99 7.39 210
c PPN 1406 293 3.28 755
d Madurai 179 105 6.48 221
e ST-CMS 1574 250 1.55 494
f ABAN 850 2.37 202
g Penna 400 2.88 115
h Total
4859 921 2379

S.
No


Particulars


FY 2012-13
Quantum Fixed Charges
Variable
Charges
Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR
300 176 7.26 394
b Samalpatti 150 99 7.76 215
c PPN 1441 293 3.45 788
d Madurai 151 105 6.80 208
e ST-CMS 1574 241 1.63 498
f ABAN 850 2.44 208
g Penna 400 2.96 119

258



S.
No


Particulars


FY 2012-13
Quantum Fixed Charges
Variable
Charges
Cost
MU Rs. Crore Rs./ kWh Rs. Crore
h Total
4866 914 2430

7.1.15 TANGEDCO submitted in its Petition that it has entered into Power Purchase
Agreements with several Independent Power Producers for purchasing electricity. It
further submitted that the procurement from various sources is expected to be lower in
the wake of planned procurement from the less expensive sources such as Talcher,
Southern Region and Eastern Region. The Power Purchase cost as submitted by
TANGEDCO in its Petition from FY 2010-11 to FY 2012-13 is tabulated below:

Table 202: Power Purchase Quantum and Cost as submitted by TANGEDCO in the
Petition
S.
No
Particulars
FY 2010-11
Quantum Fixed Charges
Variable
Charges
Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 875 153 7.15 779
b Samalpatti 378 100 7.54 385
c PPN 2494 336 3.47 1202
d Madurai 353 107 7.46 370
e ST-CMS 1652 303 2.00 633
f ABAN 820 116 1.58 246
g Penna 370 59 1.59 118
h Total 6942 1174 3732


S.
No
Particulars
FY 2011-12
Quantum Fixed Charges
Variable
Charges
Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 795 146 9.52 902
b Samalpatti 575 117 9.74 678

259



S.
No
Particulars
FY 2011-12
Quantum Fixed Charges
Variable
Charges
Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
c PPN 2375 328 6.10 1777
d Madurai 575 132 10.02 708
e ST-CMS 1780 310 2.19 700
f ABAN 801 115 1.77 256
g Penna 365 61 1.75 125
h Total 7266 1209 5146

S.
No
Particulars
FY 2012-13
Quantum Fixed Charges
Variable
Charges
Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 495 154 10.86 692
b Samalpatti 575 94 11.21 738
c PPN 2395 309 8.20 2273
d Madurai 575 140 12.02 831
e ST-CMS 1795 317 2.52 769
f ABAN 810 110 1.86 261
g Penna 375 60 1.84 128
h Total 7020 1183 5692

Commissions View:
7.1.16 As regards FY 2010-11, TANGEDCO has submitted the actual power purchase cost
corresponding to the quantum purchased from Independent Power Producers. Since
TANGEDCO has submitted the actual expenses, the Commission has allowed the power
purchase cost corresponding to the quantum purchased from IPPs.
7.1.17 As regards the projection of power purchase cost of various IPPs in FY 2011-12 and FY
2012-13, the Commission asked TANGEDCO to submit the basis of projection.
TANGEDCO in its reply submitted the different assumptions made in respect of power to
be purchased from various IPPs. As regards variable cost, TANGEDCO submitted that it
has considered an escalation of 15-20% in the projection of variable cost for FY 2012-13.


260



7.1.18 TANGEDCO revised the cost of power purchase from various IPPs in FY 2010-11 and
FY 2011-12. The revised data submitted by TANGEDCO is tabulated below:
Table 203: Revised data submitted by TANGEDCO
S.
No
Particulars
FY 2010-11 FY 2011-12
Quantum
Fixed
Charges
Variable
Charges
Total
Cost
Quantum
Fixed
Charges
Variable
Charges
Total
Cost
MU
Rs.
Crore
Rs./
kWh
Rs.
Crore MU
Rs.
Crore
Rs./
kWh
Rs.
Crore
a GMR 875 153 7.15 779 962 146 9.52 1062
b Samalpatti 378 100 7.54 385 351 117 9.74 459
c PPN 2496 336 3.47 1202 1483 328 6.10 1233
d Madurai 353 107 7.46 370 333 132 10.02 466
e ST-CMS 1653 303 2.00 633 1711 310 2.19 684
f ABAN 820 116 1.58 246 776 115 1.77 252
g Penna 370 59 1.59 118 366 61 1.75 125
h Total 6945 1173 3732 5982 1209 4281

7.1.19 The variable cost for various IPPs as observed from the power purchase bills is tabulated
below:
Table 204: Variable Cost as observed from the bills
S. No Particulars
Variable Cost
Range (Rs./ kWh)
1 Madurai PPCL 8.66-10.58
2 Lanco Tanjore-ABAN 1.69-1.90
3 Penna 1.69-1.95
4 ST-CMS 1.82-2.12
5 GMR 7.94-9.80
6 Samalpatti 8.36-10.46
7 PPN 4.21-7.29

7.1.20 In view of the above, the Commission feels that the fixed and variable cost claimed by
TANGEDCO in respect of various IPPs is considered for FY 2011-12 and FY 2012-13.
Further the Commission has allowed only fixed cost for those IPPs which do not get
scheduled as per Merit Order Despatch discussed in earlier section. Wherever the Power
Stations are to despatched outside Merit Order, TANGEDCO shall obtain approval of the
Commission in advance by furnishing reasons for such action. In case of emergencies

261



TANGEDCO is permitted to resort to such a practice but will approach the Commission
within a week of such action along with the reasons for such action. The Power Purchase
Cost allowed by the Commission during FY 2011-12 and FY 2012-13 is tabulated below:

Table 205: Total Cost as considered by the Commission
S.
No
Particulars
FY 2010-11
Quantum Fixed Charges
Variable
Charges
Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 875 153 7.15 779
b Samalpatti 378 100 7.54 385
c PPN 2494 336 3.47 1202
d Madurai 353 107 7.46 370
e ST-CMS 1652 303 2.00 633
f ABAN 820 116 1.58 246
g Penna 370 59 1.59 118
h Total 6942 1174 3732

S.
No
Particulars
FY 2011-12
Quantum Fixed Charges
Variable
Charges Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 962 146 9.52 1062
b Samalpatti 351 117 9.74 459
c PPN 1483 328 6.10 1233
d Madurai 333 132 10.02 466
e ST-CMS 1711 310 2.19 684
f ABAN 776 115 1.77 252
g Penna 366 61 1.75 125
h Total 5982 1209 4281

S.
No
Particulars
FY 2012-13
Quantum Fixed Charges
Variable
Charges Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
a GMR 154 154
b Samalpatti 94 94

262



S.
No
Particulars
FY 2012-13
Quantum Fixed Charges
Variable
Charges Total Cost
MU Rs. Crore Rs./ kWh Rs. Crore
c PPN 309 309
d Madurai 140 140
e ST-CMS 1795 317 2.52 769
f ABAN 810 110 1.86 261
g Penna 375 60 1.84 128
h Total 2980 1183 1855

Power Purchase from NCES and Captive Power Plants:
7.1.21 The Commission in the Previous Tariff Order for TNEB estimated the cost from NCES
sources in accordance with the respective Tariff Orders issued by the Commission. The
Power Purchase Cost corresponding to the Power Purchase Quantum of NCES and
Captive Power Plants as approved by the Commission is tabulated below:
Table 206: Power Purchase Cost approved by the Commission in Previous Tariff Order
S. No Particulars
FY 2010-11
Quantum Variable Cost Total Cost
MU Rs./ kWh Rs. Crore
1 CPP 671 3.84 258
2 Solar 0 0 0
3 Wind 9458 3.59 3399
4 Cogeneration 810 3.92 318
5 Biomass 111 4.66 52
6 Total 11050 4027

S. No Particulars
FY 2011-12
Quantum Variable Cost Total Cost
MU Rs./ kWh Rs. Crore
1 CPP 571 3.84 219.26
2 Solar 0 0 0.00
3 Wind 9973 3.59 3584.30
4 Cogeneration 1038 4.91 509.66
5 Biomass 111 4.80 53.31

263



S. No Particulars
FY 2011-12
Quantum Variable Cost Total Cost
MU Rs./ kWh Rs. Crore
6 Total 11693 4367

S. No Particulars
FY 2012-13
Quantum Variable Cost Total Cost
MU Rs./ kWh Rs. Crore
1 CPP 371 3.84 142.46
2 Solar 0 0 0.00
3 Wind 10487 3.59 3769.03
4 Cogeneration 1276 4.91 626.52
5 Biomass 111 4.80 53.31
6 Total 12245 4591.32

7.1.22 TANGEDCO submitted that it has entered into agreements with a few private energy
generators owning captive generating sources and cogeneration sources, which pump
their surplus power into the Grid. In addition, private wind power producers also sell
power to TANGEDCO based on the options exercised by them. The estimation of the
quantity of power likely to be made available for sale is based on prevailing trends. The
Power Purchase Cost as submitted by TANGEDCO in the Petition towards NCES is
tabulated below:
Table 207: Power Purchase Quantum and Cost towards NCES Sources as submitted by
TANGEDCO in the Petition

S. No Particulars
FY 2010-11
MU Rs./ kWh Rs. Crore
Quantum Variable Cost Total Cost
1 CPP 460 3.50 161
2 Solar 2 4.49 1
3 Wind 8707 3.38 2944
4 Cogeneration 997 3.52 351
5 Biomass 110 4.47 49

264



S. No Particulars
FY 2010-11
MU Rs./ kWh Rs. Crore
Quantum Variable Cost Total Cost
6 Total 10276 3506

S. No Particulars
FY 2011-12
MU Rs./ kWh Rs. Crore
Quantum Variable Cost Total Cost
1 CPP 575 4.23 243
2 Solar 10 4.74 5
3 Wind 9245 3.38 3125
4 Cogeneration 1135 3.60 409
5 Biomass 115 4.54 52
6 Total 11080 3834

S. No Particulars
FY 2012-13
MU Rs./ kWh Rs. Crore
Quantum Variable Cost Total Cost
1 CPP 580 4.44 258
2 Solar 11 4.77 5
3 Wind 9988 3.38 3376
4 Cogeneration 1469 3.78 555
5 Biomass 120 4.77 57
6 Total 12168 4251

Commissions View:
7.1.23 As regards FY 2010-11, TANGEDCO has submitted the actual power purchase cost
corresponding to the quantum purchased on account of NCES and Captive Power Plants.
Since TANGEDCO has submitted actual expenses pertaining to NCES and CPPs, the
Commission has allowed the power purchase cost corresponding to the quantum
purchased from NCES and CPPs.


265



7.1.24 For projection of power purchase cost in FY 2011-12 and FY 2012-13, the Commission
asked TANGEDCO to submit the basis of power purchase cost in FY 2011-12 and FY
2012-13. In reply TANGEDCO submitted the following:
a. Projection of CPP, Cogeneration and Biomass Power Plants: 5% escalation has been
taken for projection of power purchase cost in FY 2011-12 (Second Half-H2) considering
actual in first six months of FY 2011-12 as the base and further 5% escalation on total of
FY 2011-12 to arrive at power purchase cost in FY 2012-13.
b. Solar Power under RPSSP Scheme of National Solar Mission: Rs. 6.21/ Unit as the base
rate in FY 2011-12 and further 3% escalation on base rate of Rs. 6.21/ Unit in FY 2012-
13
c. Solar Plant: Rs. 4.50 per Unit as determined by the Commission in Order 6-1 dated
September 22, 2009.
d. Wind energy: Since wind is infirm power, an incremental increase of 6% in FY 2011-12
considering FY 2010-11 as the base and further 15% increase in FY 2012-13 considering
FY 2011-12 as the base.
7.1.25 As regards Power purchase cost from CPP and NCES Sources other than Solar,
TANGEDCO submitted revised cost on account of power purchased and energy wheeled
from FY 2010-11 to FY 2012-13 which is tabulated below:
Table 208: Revised Submission for Wheeled Energy from FY 2010-11 to FY 2012-13
Particulars
Power
Purchase (MU)
PP Cost (Rs.
Crore)
Wheeled
Energy (MU)
Cost for wheeled
energy (Rs.
Crore)
Wind
FY 2010-11 5263 1585 3169 1267
FY 2011-12 5130 1545 3942 1577
FY 2012-13 5408 1629 4141 1657

Cogeneration
FY 2010-11 997 351 351 140
FY 2011-12 1135 409 400 160
FY 2012-13 1202 430 456 182

Biomass
FY 2010-11 110 49 0 0
FY 2011-12 115 52 0 0

266



Particulars
Power
Purchase (MU)
PP Cost (Rs.
Crore)
Wheeled
Energy (MU)
Cost for wheeled
energy (Rs.
Crore)
FY 2012-13 56 25 0 0

CPP
FY 2010-11 460 161 595 238
FY 2011-12 575 243 673 269
FY 2012-13 582 258 762 305

7.1.26 The Commission has considered the above data submitted by TANGEDCO for
calculation of Power Purchase Cost from all NCES Sources except Solar and CPP.
7.1.27 As regards cost of energy wheeled in case of Captive Power Plants and other sources, the
Commission is of the view that it is not correct to include the same in power purchase
cost and it should be treated separately.
7.1.28 For power purchase cost on account of solar energy sources, the Commission is of the
view that the escalation rates and the methodology adopted by TANGEDCO in projection
of power purchase cost from Solar units are reasonable. Therefore the Commission has
considered the same for allowing the Power Purchase Cost on account of Solar Power
Plants.
Table 209: Power Purchase Cost approved by the Commission for various NCES Sources

Particulars
FY 2010-11
Quantum
(MU)
Cost (Rs.
Crore)
Rate (Rs./
kWh)
CPP 460 161
3.50
Solar 2.07 0.93
4.50
Wind 5263 1585
3.01
Cogeneration 997 351
3.52
Biomass 110 49
4.47
Sub-total-NCES 6833 2147
3.14





267



Particulars
FY 2011-12
Quantum
(MU)
Cost (Rs.
Crore)
Rate (Rs./
kWh)
CPP 575 243
4.23
Solar 10.44 4.87
4.67
Wind 5130 1545
3.01
Cogeneration 1135 409
3.60
Biomass 115 52
4.54
Sub-total-NCES 6965 2254
3.24



Particulars
FY 2012-13
Quantum
(MU)
Cost (Rs.
Crore)
Rate (Rs./
kWh)
CPP 582 258
4.43
Solar 10.78 5.14
4.77
Wind 5408 1629
3.01
Cogeneration 1202 430
3.58
Biomass 56 25
4.54
Sub-total-NCES 7258 2347
3.23



Traders:
7.1.29 In the Previous Tariff Order, the Commission approved the power purchase on account of
traders at an average rate of Rs. 5 per kWh. The Power Purchase quantum and cost
approved by the Commission in the previous tariff Order from FY 2010-11 to FY 2012-
13 is tabulated below:
Table 210: Power Purchase on account of Traders approved in Previous Tariff Order
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Quantum
(MU)
Cost (Rs.
Crore)
Quantum
(MU)
Cost (Rs.
Crore)
Quantum
(MU)
Cost (Rs.
Crore)
1 Traders 4538 2269 2000 1000 2000 1000

7.1.30 TANGEDCO has not offered any explanations on its purchases from Power traders in its
Petition. However TANGEDCO has submitted the quantum and corresponding cost to be

268



purchased from Traders during FY 2010-11 and FY 2011-12 in their Petition which is
tabulated below:
Table 211: Power Purchase Cost on account of Traders as submitted by TANGEDCO in
the Petition
S. No Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petition Petition Petition
Quantum
(MU)
Cost (Rs.
Crore)
Quantum
(MU)
Cost (Rs.
Crore)
Quantum
(MU)
Cost (Rs.
Crore)
1 Traders 10483 5528 12500 6789 5365 3060

Commissions View:
7.1.31 The Commission observed that TANGEDCO has included the quantum and amount of
power purchased from Traders in purchase of power from CGS. Power purchase from
Traders does not fall under CGS. Hence the Commission is allowing it separately.
7.1.32 The Commission observed that TANGEDCO in its subsequent submissions has changed
the cost on account of Traders multiple times. TANGEDCO has also revised the actual
cost on account of power purchased from traders in FY 2010-11. It is observed from the
latest submission of TANGEDCO that the average rate of power purchase from traders in
FY 2010-11 was Rs. 5.32 per kWh. The Commission has considered the power purchase
quantum and cost from traders as submitted by TANGEDCO in its revised submission.
7.1.33 Similarly for FY 2011-12, TANGEDCO has submitted an even higher rate of power
purchased from traders, i.e., Rs. 6.82/ kWh. Therefore the Commission has capped the
power purchase rate on the power purchased from Traders in FY 2011-12 at Rs 5.32 per
kWh.
7.1.34 As regards quantum to be purchased from Traders in FY 2012-13, energy from Traders is
not going to be scheduled under Merit Order Despatch made by the Commission. The
Commission observed that the energy is available from other sources in order to meet the
energy requirement. However in order to provide flexibility and to set the benchmark, the
Commission has considered the purchase from traders at 2000 MU at an average rate of
Rs. 4.00/ kWh in FY 2012-13.


269



7.1.35 The Commission further directs that TANGEDCO shall take prior approval from the
Commission in case power purchase from traders in FY 2012-13 exceeds the quantum
and rate specified in this Tariff Order.
7.1.36 The power purchase cost on account of traders as approved by the Commission in this
Order is tabulated below:
Table 212: Power Purchase Cost on account of Traders approved by the Commission
Particulars
FY 2010-11
Previous Tariff Order Petition Commission
Quantum
(MU)
Cost
(Rs.
Crore)
Quantum
(MU)
Cost
(Rs.
Crore)
Quantum
(MU)
Cost (Rs.
Crore)
Traders 4538 2269 10540 5607 10540 5607

Particulars
FY 2011-12
Previous Tariff Order Petition Revised Submission Commission
Quantum
(MU)
Cost (Rs.
Crore)
Quantum
(MU)
Cost
(Rs.
Crore)
Quantum
(MU)
Cost
(Rs.
Crore)
Quantum
(MU)
Cost
(Rs.
Crore)
Traders 2000 1000 12500 6789 9400 6413 9400 5000


Particulars
FY 2012-13
Previous Tariff Order Petition Commission
Quantum
(MU)
Cost
(Rs. Crore)
Quantum
(MU)
Cost
(Rs. Crore)
Quantum
(MU)
Cost
(Rs. Crore)
Traders 2000 1000 5365 3060 2000 800












270



Power Purchase Summary:
7.1.37 Based on the above discussions, the power purchase summary from FY 2010-11 to FY
2012-13 from all the above sources is tabulated below:
Table 213: Power Purchase Summary from FY 2010-11 to FY 2012-13
FY 2010-11
Particulars
FY 2010-11
Petition
Revised Submission dated
14.03.2012 Commission
Quantum Cost
Average
Rate Quantum Cost
Average
Rate Quantum Cost
Average
Rate
MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh
Other Sources
IPPs
GMR
875 779 8.91 875 779 8.90 875 779 8.90
Samalpatti
378 385 10.19 378 385 10.18 378 385 10.18
PPN
2494 1202 4.82 2496 1202 4.81 2496 1202 4.82
Madurai
353 370 10.48 353 370 10.49 353 370 10.49
ST-CMS
1652 633 3.83 1653 633 3.83 1653 633 3.83
ABAN
820 246 3.00 820 246 3.00 820 246 3.00
Penna
370 118 3.20 370 118 3.20 370 118 3.20
Sub-total-IPPs
6942 3732 5.38 6945 3732 5.37 6945 3732 5.37


NCES

CPP
460 161 3.50 460 161 3.50 460 161 3.50
Solar
2.07 0.93 4.49 2.07 0.93 4.50 2.07 0.93 4.50
Wind
8707 2944 3.38 8707 2944 3.38 5263 1585 3.01
Cogeneration
997 351 3.52 997 351 3.52 997 351 3.52
Biomass
110 49 4.47 110 49 4.47 110 49 4.47
Sub-total-
NCES
10276 3506 3.41 10276 3506 3.41 6833 2147 3.14


CGS

NLC-TS-I
3066 630 2.05 3066 630 2.05 3066 630 2.05
NLC-TS-II
(Stage-I)
3042 532 1.75
1214 246 2.02
3042 533
2.02
NLC-TS-II
(Stage-II)
1828 287 1.57 1.57
NLC-TS-I
Expansion
1509 453 3.00 1509 489 3.24 1509 453 3.00

271



Particulars
FY 2010-11
Petition
Revised Submission dated
14.03.2012 Commission
Quantum Cost
Average
Rate Quantum Cost
Average
Rate Quantum Cost
Average
Rate
MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh
NTPC SR (I &
II)
4039 806 2.00 4039 806 2.00 4039 806 2.00
NTPC SR (III)
1024 262 2.56 1024 262 2.56 1024 262 2.56
NTPC ER
735 224 3.04 735 224 3.04 735 224 3.04
NTPC -
Talcher II
3664 909 2.48 3664 909 2.48 3664 909 2.48
Kayankulam
854 786 9.20 854 786 9.20 854 786 9.20
MAPS
1398 277 1.98 1399 277 1.98 1399 277 1.98
KAIGA
860 263 3.06 860 263 3.06 860 263 3.06
Simahadri
0 0 0.00 0 0 0.00 0 0 0.00
Kudankulam
0 0 0.00 0 0 0.00 0 0 0.00
NLC-TS-
IIExpansion
0 0 0.00 0 0 0.00 0 0 0.00
MAPC (Addl.)
0 0 0.00 0 0 0.00 0 0 0.00
NTPC-TNEB
(JV)
0 0 0.00 0 0 0.00 0 0 0.00
PGCIL-SR &
ER
0 457 0.00 0 457 0.00 0 457 0.00
UI
1441 472 3.27 1441 472 3.28 1441 472 3.28
Subtotal-CGS
21633 6070 2.81 21633 6108 2.82 21633 6072 2.81


Traders
10483 5528 5.27 10540 5607 5.32 10540 5607 5.32


Wheeling on
account of
Biomass,
Cogen and
Captive Power
Plants
387 968 387 4.00


Total
49335 19224 3.90 50362 19339 3.84 45950 17556 3.82





272



FY 2011-12
Particulars
FY 2011-12
Petition
Revised Submission dated
14.03.2012 Commission
Quantum Cost
Average
Rate Quantum Cost
Average
Rate Quantum Cost
Average
Rate
MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh
Other Sources
IPPs
GMR 795 902 11.35 962 1062 11.04 962 1062 11.04
Samalpatti 575 678 11.79 351 460 13.09 351 459 13.08
PPN 2375 1777 7.48 1483 1233 8.31 1483 1233 8.31
Madurai 575 708 12.32 333 466 14.00 333 466 13.99
ST-CMS 1780 699 3.93 1711 684 4.00 1711 684 4.00
ABAN 801 256 3.20 776 252 3.25 776 252 3.25
Penna 365 125 3.42 366 125 3.42 366 125 3.42
Sub-total-IPPs 7266 5146
7.08
5982
4282 7.16
5982
4281 7.16

NCES
CPP 575 243 4.23 575 243 4.23 575 243 4.23
Solar 10 5 4.74 10 5 4.67 10 5 4.67
Wind 9245 3125 3.38 9245 3125 3.38 5130 1545 3.01
Cogeneration 1135 409 3.60 1135 409 3.60 1135 409 3.60
Biomass 115 52 4.54 115 52 4.54 115 52 4.54
Sub-total-
NCES
11080 3834 3.46 11081 3834 3.46 6965 2254 3.24

CGS
NLC-TS-I 3066 676 2.21 3066 655 2.14 3066 655 2.14
NLC-TS-II
(Stage-I)
3242 679 2.10
1503 432 2.87 1503
769 2.37
NLC-TS-II
(Stage-II) 1739 472 2.72 1739
NLC-TS-I
Expansion 1609 484 3.01 1609 526 3.27 1609 504 3.14
NTPC SR (I &
II) 4139 897 2.17 4139 877 2.12 4139 862 2.08
NTPC SR (III) 1105 302 2.73 1105 294 2.66 1105 291 2.64
NTPC ER 885 323 3.65 885 324 3.67 885 324 3.66
NTPC -
Talcher II 3690 1045 2.83 3690 1204 3.26 3690 1082 2.93

273



Particulars
FY 2011-12
Petition
Revised Submission dated
14.03.2012 Commission
Quantum Cost
Average
Rate Quantum Cost
Average
Rate Quantum Cost
Average
Rate
MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh MU
Rs.
Crore
Rs./
kWh
Kayankulam 250 369 14.75 205 247 12.03 205 267 13.00
MAPS 1498 306 2.04 1499 304 2.03 1499 304 2.03
KAIGA 1107 347 3.13 1107 349 3.16 1107 349 3.16
Simahadri 328 95 2.90 328 117 3.57 328 106 3.22
Kudankulam 333 100 3.00 0 0 0.00 0 0 0.00
NLC-TS-
IIExpansion 1295 259 2.00 0 0 0.00 0 0 0.00
MAPC (Addl.) 0 0 0.00 0 0 0.00 0 0 0.00
NTPC-TNEB
(JV) 0 0 0.00 0 0 0.00 0 0 0.00
PGCIL-SR &
ER 0 480 0.00 0 480 0.00 0 480 0.00
UI 750 270 3.60 750 270 3.60 750 270 3.60
Subtotal-CGS 23297 6632
2.85 21625 6553 3.03 21625 6264 2.90

Traders 12500 6789 5.43 9400 6413 6.82 9400 5000 5.32

Wheeling
charges 531 1327 531 4.00

Total 54143 22932 4.24 49415 21612 4.37 43973 17800 4.05

FY 2012-13
Particulars
FY 2012-13
Petition Commission
Quantum Cost Average Rate Quantum Cost Average Rate
MU
Rs.
Crore Rs./ kWh MU
Rs.
Crore Rs./ kWh
Other Sources
IPPs
GMR 495 692 13.98
0 154 0
Samalpatti 575 738 12.84
0 94 0
PPN 2395 2273 9.49
0 309 0
Madurai 575 831 14.46
0 140 0

274



Particulars
FY 2012-13
Petition Commission
Quantum Cost Average Rate Quantum Cost Average Rate
MU
Rs.
Crore Rs./ kWh MU
Rs.
Crore Rs./ kWh
ST-CMS 1795 769 4.28 1795 769 4.28
ABAN 810 261 3.22 810 261 3.22
Penna 375 128 3.43 375 128 3.43
Sub-total-IPPs 7020 5692
8.11 2980 1855 6.22

NCES
CPP 580 258 4.44 582 258 4.43
Solar 10.78 5.14 4.77 10.78 5.14 4.77
Wind 9988 3376 3.38 5408 1629 3.01
Cogeneration 1469 555 3.78 1202 430 3.58
Biomass 120 57 4.77 56 25 4.54
Sub-total-NCES 12168 4251
3.49 7258
2347 3.23

CGS
NLC-TS-I 3066 692 2.26 3066 658 2.15
NLC-TS-II (Stage-I)
3272 708 2.16 3272 812 2.48
NLC-TS-II (Stage-II)
NLC-TS-I Expansion 1624 494 3.04 1624 516 3.18
NTPC SR (I & II) 4164 932 2.24 4164 909 2.18
NTPC SR (III) 1125 311 2.76 1125 305 2.71
NTPC ER 897 340 3.79 52
NTPC - Talcher II 3705 1061 2.86 3705 1127 3.04
Kayankulam 0 0 0.00 0 0 0.00
MAPS 1508 321 2.13 1508 321 2.13
KAIGA 1178 364 3.09 1178 390 3.31
Simahadri 925 268 2.90 1415 330 2.33
Kudankulam 3245 1022 3.15 1716 540 3.15
NLC-TS-IIExpansion 2135 427 2.00 1318 264 2.00
MAPC (Addl.) 256 77 3.00 518 155 3.00
NTPC-TNEB (JV) 3465 1005 2.90 2029 588 2.90
PGCIL-SR & ER 0 504 0.00 0 504 0.00
UI 145 60 4.14 0 0 0.00
Subtotal-CGS 30710 8586
2.80 26638 7473 2.81

Traders 5365 3060 5.70 0 0 0.00

275



Particulars
FY 2012-13
Petition Commission
Quantum Cost Average Rate Quantum Cost Average Rate
MU
Rs.
Crore Rs./ kWh MU
Rs.
Crore Rs./ kWh

Wheeling charges 727

Total 55263 22316 4.04 36876 11675 3.17

276



8 Aggregate Revenue Requirement of TANGEDCO
Regulatory Framework
8.1.1 Regulation 68 of the TNERC Tariff Regulations specifies the following:
68 Component of tariff for supply of electricity
(1) The charges for the electricity supplied by the Distribution licensee may include:-
(a) a fixed charges / Demand Charges;
(b) Charges for actual electricity supplied;
(c) a rent or other charge in respect of meter or electrical plant provided by the
Distribution licensee;
(2) Rent for meter provided by the licensee and other charges are treated as non tariff
charges and shall be determined by the Commission in accordance with the provision of
Tamil Nadu Electricity Supply Code and Tamil Nadu Electricity Distribution Code.
(3) Charges for actual electricity supplied and fixed charges are tariff related charges
and the Commission shall determine these charges on an application from the
Distribution licensee.
8.1.2 Regulation 69 (1) of the Tariff Regulation 2005, specifies that the Distribution licensee
shall file application for retail distribution of electricity along with Aggregate Revenue
Requirement (ARR).
8.1.3 Regulation 70 of the Tariff Regulations 2005 specifies the following:
70. The Aggregate Revenue Requirement of Distribution licensee
The Aggregate Revenue Requirement of Distribution licensee consists of the following:-
(i) Cost of Power Purchase
(ii) Operation and Maintenance expenses
(iii) Depreciation
(iv) Interest and cost of finance
(v) Income Tax
(vi) Provision for Bad and Doubtful Debts
(vii) Provision for Insurance
(viii) Provision for contingency reserve
(ix) other expenses
(x) Return on equity / Reasonable rate of return

277



Fixed Cost:
8.1.4 The Commission in Chapter-5 of this Order has approved fixed cost pertaining to
Distribution function of TANGEDCO, which is under:
Table 214: Fixed Cost approved by the Commission in Chapter 5 (in Rs Crore)
Particulars
Petition Approved
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
Operation and Maintenance Expenses
2623 2728 2837 2623 2728 2837
Depreciation
278 307 352 229 254 287
Interest on Long term loan
1651 3150 3355 1651 3150 3355
Other Debits & extra ordinary items
28 29 29 28 29 29
Prior Period Debit/(Credit) Charges
732 236 0 0 0 0
Reasonable Return / Return on Equity
153 199 208 0 0 0
Demand Side Management
0 0 0 0 0 10
Total 5465 6649 6780 4531 6161 6518

Own Generation and Power Purchase Cost:
8.1.5 The Commission in Chapter 6 and 7 of this Order has approved cost pertaining to own
generating plants and Power purchase from other sources of TANGEDCO, which is
under:
Table 215: Power Purchase Cost approved by the Commission (in Rs Crore)
Particulars
FY 2010-11
Petition
Revised Submission dated
14.03.2012
Commission
Quant
um
Cost
Average
Rate
Quant
um
Cost
Average
Rate
Quant
um
Cost
Averag
e Rate

MU
Rs
Crore
Rs/kWh MU
Rs
Crore
Rs/kWh MU
Rs
Crore
Rs/kW
h
Own
Generation
23845 6118 2.57 23192 6118 2.64 23233 5404 2.33
Power
Purchase-
Other
Sources
49335 19224 3.90 50362 19339 3.84 45950 17556 3.82
Total
73180 25342 3.46 73555 25457 3.46 69183 22961 3.32



278



Particulars
FY 2011-12
Petition
Revised Submission dated
14.03.2012
Commission
Quant
um
Cost
Average
Rate
Quantu
m
Cost
Average
Rate
Quan
tum
Cost
Avera
ge
Rate

MU
Rs
Cror
e
Rs/kWh MU
Rs
Crore
Rs/kWh MU
Rs
Crore
Rs/kW
h
Own
Generation 26737 7473* 2.80 26159 7392 2.83 25680 6582 2.56
Power
Purchase-
Other
Sources
54143 22932 4.24 49415 21612 4.37 43973 17800 4.05
Total 80880 30405 3.76 75574 29005 3.84 69653 24382 3.50
Note:*Rs 7473 Crore is Own Generation cost submitted by TANGEDCO formats along with the Petition. However
for the purpose of Revenue gap calculation in page no. 125 of their petition, TANGEDCO has considered Rs 7467
Crore towards cost of Own generation. The Commission for the purpose of comparison has considered the
submission of TANGEDCO at various places in this Order.
Particulars
FY 2012-13
Petition Commission
Quantum Cost
Average
Rate
Quantum Cost
Average
Rate
MU
Rs
Crore
Rs/kWh MU
Rs
Crore
Rs/kWh
Own Generation
32611 10226 3.14 33908 8939 2.64
Power Purchase-Other
Sources
55263 22316 4.04 36876 11675 3.17
Total 87874 32543 3.70 70784 20614 2.91

Intra-State Transmission Charges:
8.1.6 The Intra-State transmission charges approved by the Commission in last Tariff Order are
as below:
Table 216: Intra-State Transmission Charges approved by the Commission in Last Tariff Order
(in Rs Crore)
Particulars
Last Tariff Order
FY 11 FY 12 FY 13
Annual Transmission Charges payable to TANTRANSCO 1786 1917 2062


279



8.1.7 The Commission noted that the TANTRANSCO has sought retrospective revision of
Intra-State Transmission Charges for FY 2010-11 and FY 2011-12. Regulation (vii) of
TNERC (Terms and Conditions for Determination of Tariff for Intra state Transmission
/ Distribution of Electricity under MYT Framework) Regulations, 2009, states as under:
vii).True up of variations in revenue and cost The variations on account of
controllable factors like sales and power purchase shall be reviewed at the end of
each year of the control period based on audited accounts of the licensee and
prudence checks by the Commission.
8.1.8 The Commission notes that the FY 2010-11 and FY 2011-12 are already over and the
transmission charges approved by the Commission in last Tariff Order would be payable
by TANGEDCO, for FY 2010-11 and FY 2011-12. Truing up requirement for FY 2010-
11 and FY 2012-13, if any, based on prudence check of the Commission would be
carried forward to FY 2012-13 and would be recoverable from Transmission tariff of FY
2012-13.
8.1.9 The transmission charge approved by the Commission in Order for TANTRANSCO is as
under:
Table 217: Intra-State Transmission Charges approved by the Commission (in Rs Crore)
Particulars
Petition Approved
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
Annual Transmission Charges
payable to TANTRANSCO
2333 2608 2782 1786 1917 3076

Non Tariff and Other Income
8.1.10 The Commission has accepted the submission of TANGEDCO pertaining to Non Tariff
Income and Other Income, except income from Trading, as same has not been
considered as a part of Sales. Non tariff Income and Other Income approved by the
Commission is as under:




280



Table 218: Non Tariff Income and Other Income approved by the Commission (in Rs Crore)
Particulars
Petition Approved
FY 11 FY 12 FY 13 FY 11 FY 12 FY 13
(i) Non Tariff Revenue
522 624 746 522 624 746
(ii) Other Income
275 289 57 275 289 57
(iii)Other Income for Generation
70 59 59 70 59 59
(iv) Income from Trading
71 0 0 0 0 0

Sharing of Gain and Losses
8.1.11 Regulation (ix) of TNERC (Terms and Conditions for Determination of Tariff for Intra
state Transmission / Distribution of Electricity under MYT Framework) Regulations,
2009, states as under:
ix). Mechanism for sharing approved gains or losses arising out of controllable
factors. The financial loss, if any, due to failure to achieve the target for the
controllable costs in any of the years in the control period shall be borne by the
licensees and the gains, if any, shall be shared with the beneficiaries at 50: 50.
8.1.12 The Commission notes that the due to higher T&D loss vis-a-vis approved by the
Commission in its last tariff Order, additional power purchase cost incurred by
TANGEDCO is as under:
Table 219: Additional power Purchase on account of Higher T&D loss (in Rs Crore)
Particulars Reference
FY 2010-11 FY 2011-12
Sales A 53829 53916
T&D Loss B 21.73% 22.13%
Energy Requirement C=A/(1-B) 68770 69240
Target T&D Loss D 17.60% 17.20%
Energy Requirement as per Target E=A/(1-D) 65326 65116
Extra Power Purchased F=C-E 3444 4124
Average Power Purchase Cost approved Rs/kWh 3.32 3.50
Additional Power Purchase on account of higher T&D loss Rs Crore 1143 1444


281



8.1.13 Regulation (vii) of TNERC (Terms and Conditions for Determination of Tariff for Intra
state Transmission / Distribution of Electricity under MYT Framework) Regulations,
2009, states as under:
vii).True up of variations in revenue and cost The variations on account of
controllable factors like sales and power purchase shall be reviewed at the end of
each year of the control period based on audited accounts of the licensee and
prudence checks by the Commission.

8.1.14 Hence, the above mentioned Regulations provides for true-up based on Audited accounts
and same will be revisited by the Commission in final truing up of FY 2010-11 and FY
2011-12, based on Audited Accounts.
8.1.15 The Commission proposes to deal with the disallowance of additional power purchase on
account of higher T&D loss for FY 2010-11 and FY 2011-12 at the time of final truing
up, based on Audited Accounts.
8.1.16 The Commission is also not doing provisional truing up on account of AT&C losses, as
same can only be undertaken based on Audited accounts. The Commission will examine
this ascpect in final truing up of respective years.

Aggregate Revenue Requirement of TANGEDCO
8.1.17 Aggregate Revenue Requirement of TANGEDCO approved by the Commission is as
under:
Table 220: ARR approved by the Commission (in Rs Crore)
Particulars
Last Tariff Order Petition Approved
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
Expenses in respect of
Generation
5999 7765 8717 6118 7467 10207 5358 6582 8939
Power Purchase Cost 16203 13836 11372 19224 22932 22316 17556 17800 11675
Annual Transmission
Charges payable to
TANTRANSCO
1786 1917 2062 2333 2608 2782 1786 1917 3076
Operation and
Maintenance Expenses
2923 3130 3356 2623 2728 2837 2623 2728 2837

282



Particulars
Last Tariff Order Petition Approved
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
FY
11
FY
12
FY
13
Depreciation 349 393 434 278 307 352 229 254 287
Interest on Long term
loan
1428 1325 1475 1651 3150 3355 1651 3150 3355
Other Debits & extra
ordinary items
10 7 7 28 29 29 28 29 29
Prior Period
Debit/(Credit) Charges
0 0 0 732 236 0 0 0 0
Reasonable Return /
Return on Equity
134 108 117 153 199 208 0 0 0
Demand Side
Management
10 10 10 0 0 0 0 0 10
Aggregate Revenue
Requirement
28841 28491 27550 33140 39656 42085 29231 32459 30208
Less:
(i) Non Tariff Revenue 514 637 789 522 624 746 522 624 746
(ii) Other Income 381 399 417 275 289 57 275 289 57
(iii)Other Income for
Generation
0 0 0 70 59 59 70 59 59
(iv) Income from Trading 0 0 0 71 0 0 0 0 0
Net Revenue
Requirement
27946 27455 26344 32202 38684 41223 28364 31488 29346






283



9 TARIFF PHILOSOPHY AND CATEGORY-WISE TARIFFS FOR FY
2010-11
9.1 Applicability of Revised Tariffs
9.1.1 The revised tariffs will be applicable from April 1, 2012. In cases where there is a billing
cycle difference for a consumer with respect to the date of applicability of the revised
tariffs, then the revised tariff should be made applicable on a pro-rata basis for the
consumption. The bills for the respective periods as per existing tariff and revised tariffs
shall be calculated based on the pro-rata consumption (units consumed during respective
period arrived at on the basis of average unit consumption per day multiplied by number
of days in the respective period falling under the billing cycle).
9.2 Revenue Gap and Regulatory Asset
9.2.1 TANGEDCO in its Petition has projected revenue gap at existing tariff for the Control
Period as under:
Table 221: Revenue Gap at Existing Tariff from FY 2010-11 to FY 2012-13 (Rs Crore)
Particulars
Petition
FY 11 FY 12 FY 13
Aggregate Revenue Requirement 33140 39656 42085
Less:
(i) Non Tariff Revenue 522 624 746
(ii) Other Income 275 289 57
(iii)Other Income for Generation 70 59 59
(iv) Income from Trading 71 0 0
Net Revenue Requirement 32202 38684 41223

Less: Revenue from Sale of Power at Existing Tariff including Tariff Subsidy 20469 24188 26676

Revenue Gap at Existing Tariff 11733 14497 14547


284



9.2.2 TANGEDCO in Page 59 of its petition has also submitted that the revenue gap pertaining
to period starting from April 1, 2010 to October 31, 2010, is Rs 6273.21 Crore and that it
has to be addressed through financial restructuring. The Commission accepts this
submission of the Petitioner.
9.2.3 The Commission for the purpose of revenue receipts for FY 2010-11 and FY 2011-12,
asked TANGEDCO to submit their actual revenue receipts by way of direct sales to its
consumers in Form-19, after removing the deemed revenue considered in their book of
accounts on account of wheeling of power.
9.2.4 TANGEDCO submitted revised Form-19 vide its email dated 18.3.2012. The
Commission has accepted Rs 18362 Crore and Rs 18076 Crore for FY 2010-11 and FY
2012-13, as revenue from sale of power at existing tariff, after removing revenue from
sale of power towards Puducherry, as the same has not been considered either in Power
purchase or in sales.
9.2.5 The Commission has re-computed the gap for FY 2010-11 to FY 2012-13. The revenue
gap estimated for the Control Period is as under:
Table 222: Revenue Gap at Existing Tariff from FY 2010-11 to FY 2012-13 (Rs Crore)
Particulars
Approved
FY 11 FY 12 FY 13
Net Revenue Requirement
28364 31488 29346

Less: Revenue from Sale of Power at Existing Tariff including subsidy 18362 18076 21472

Revenue Gap at Existing Tariff
10002 13411 7874

9.2.6 The Commission has further re-computed the approved gap pertaining to the period from
November 1, 2010 to March 31, 2011, on pro-rata basis of the submission of
TANGEDCO, which is as under:
Table 223: Revenue Gap at Existing Tariff for November 1, 2010 to March 31, 2011 (Rs Crore)
Particulars
FY 2010-11
Petition Approved
Revenue Gap At Existing Tariff 11733 10002
Carrying Cost for 2 years @ 11 % per Annum 1650
Total Revenue Gap 11733 11653
Gap pertaining from 1-4-2010 to 31-10-10 6273 6230

285



Particulars
FY 2010-11
Petition Approved
Gap pertaining from 1-4-2010 to 31-10-10 (%) 53% 53%
Net Revenue Gap for November 1, 2010 to March 31, 2011 recoverable from Tariff 5460 5422

9.2.7 The Commission has approved the gap pertaining to FY 2011-12 along with carrying cost
which is computed as under:
Table 224: Revenue Gap at Existing Tariff from FY 2011-12 (Rs Crore)
Particulars
FY 2011-12
Petition Approved
Revenue Gap At Existing Tariff 14497 13411
Carrying Cost for 1 year @ 11 % per Annum 738
Total Revenue Gap 14497 14149
9.2.8 The revenue gap approved by the Commission for the period from November 2010 to
March 31, 2013, is as under:

Table 225: Revenue Gap at Existing Tariff from FY 2010-11 to FY 2012-13 (Rs Crore)
Particulars
FY 2010-11 FY 2011-12 FY 2012-13
Petitio
n
Approv
ed
Petiti
on
Appr
oved
Petitio
n
Appro
ved
Revenue Gap at Existing Tariff including
Carrying Cost at 11% per annum
5460 5422 14497 14149 14547 7874
Cumulative Revenue Gap 34503 27445


286



9.3 Tariff Philosophy
9.3.1 TANGEDCO Submission
9.3.1.1 In its tariff proposal, TANGEDCO submitted as under:
9.3.1.2 Substantial revision of tariff for LT consumers under I-A (Domestic) (Consumption
below 600 units), I-B (hut), II-A (Street light & water works), II-C (Places of worship),
IIIA (2) (Power loom weavers) and IV (Agricultural consumers) for whom tariff has not
been revised for the past 8 years (from the year 2003).
9.3.1.3 Domestic consumers under LT Tariff IC (Bulk supply) and LT tariff VI (Temporary
supply); Tariff revision for these categories has not been proposed owing to their
existing higher tariff.
9.3.1.4 Separate tariff rate for cinema theatres and cinema studios under LT Tariff IIB (2) higher
than private educational institutions in the same category is proposed in this petition.
9.3.1.5 It is proposed to introduce separate tariff for LT CT services with higher fixed charges,
considering the cost involved for the development of their infrastructure facilities.
Accordingly the tariff rates for the HT services, LT services , LTCT Services has been
progressively increased considering their cost to serve and infrastructure cost.
9.3.1.6 In case of HT consumers, uniform demand charge and appropriate tariff increase for all
categories of HT consumers are proposed and after proposed tariff revision all categories
of HT consumers except HT commercial and HT lift irrigation will be plus or minus of
the 20 percent of average cost of supply.
9.3.2 Revenue Receipts from existing and proposed tariff
9.3.2.1 TANGEDCO in its tariff proposal has proposed an overall tariff increase of 37%. The
category wise increase proposed by TANGEDCO is shown in the table below:





287



Table 226: Revenue from sale of Power at Existing Tariff and Proposed Tariff for FY 2012-13 (Rs
Crore)
ENSUING YEAR 2012-13
S.
No.
Consumer category Tariff
C
o
n
s
u
m
p
t
i
o
n

(
M
U
)
Existing
Tariff
Proposed
Tariff
Increase /
Decrease
R
a
t
e

o
f

R
e
a
l
i
s
a
t
i
o
n

R
s
/
k
w
h

R
e
v
e
n
u
e

(
R
s
.

C
r
o
r
e
)

R
a
t
e

o
f

R
e
a
l
i
s
a
t
i
o
n

R
s
/
k
w
h

R
e
v
e
n
u
e

(
R
s
.

C
r
o
r
e
)

R
e
v
e
n
u
e


(
R
s
.

C
r
o
r
e
)

%

o
f

i
n
c
r
e
a
s
e

I HIGH TENSION
Industries IA 21645 5.38 11650 6.38 13814 2164 19%
Railway Traction IB 549 5.20 286 6.36 349 64 22%

Government Education
Intuitions, etc.
IIA 929 4.76 442 5.58 519 76 17%

Private Education Institution,
etc.
IIB-1 88 5.87 52 7.09 62 11 20%
Cinema Theatre II B-2 75 5.87 44 7.41 56 12 27%

Places of Pub. Worship
II C 3 4.05 1 6.45 2 1 59%
Commercial III 2498 6.99 1746 7.59 1897 151 9%
Lift Irrigation Societies IV 8 0.56 0.5 3.50 3 2 522%

Others
V 425 3.73 159 3.73 159 0 0%
Total HT 26220 5.48 14380 6.43 16860 2480 17%
II LOW TENSION


Domestic
IA 18603 2.59 4818 3.68 6843 2025 42%

Huts
IB 424 0.55 23 2.76 117 94 400%
Bulk supply IC 11 4.00 4 4.00 4 0 0%
Street Light & Water Supply II-A 1829 3.52 643 5.24 1017 374 58%

Government Education
Intuitions, etc.
II-B 223 4.85 108 5.54 124 15 14%

Private Education Institution,
etc.
II-B
(1)
82 5.64 46 7.43 61 15 32%
Cinema Theatre
II-B
(2)
70 5.60 39 8.36 58 19 49%

Place of Worship
II-C 114 3.09 35 5.39 62 26 74%

Cottage and Tiny Industries
IIIA 1 128 2.82 36 5.08 65 29 80%

Power Looms
IIIA 2 925 2.35 217 5.39 499 282 130%

Industries
IIIB 4891 5.13 2512 8.72 4266 1754 70%

288



ENSUING YEAR 2012-13
S.
No.
Consumer category Tariff
C
o
n
s
u
m
p
t
i
o
n

(
M
U
)
Existing
Tariff
Proposed
Tariff
Increase /
Decrease
R
a
t
e

o
f

R
e
a
l
i
s
a
t
i
o
n

R
s
/
k
w
h

R
e
v
e
n
u
e

(
R
s
.

C
r
o
r
e
)

R
a
t
e

o
f

R
e
a
l
i
s
a
t
i
o
n

R
s
/
k
w
h

R
e
v
e
n
u
e

(
R
s
.

C
r
o
r
e
)

R
e
v
e
n
u
e


(
R
s
.

C
r
o
r
e
)

%

o
f

i
n
c
r
e
a
s
e


Agriculture
IV 11546 0.25 294 1.75 2025 1731 589%

Commercial
V 5258 6.66 3501 8.36 4395 895 26%

Temporary supply
VI 18 10.65 19 23.66 21 2 11%

Total LT
44121 12297 19557 7261 59%

Grand Total
70342 26676 36417 9741 37%

9.4 Commissions View
9.4.1 Tariff Rationalisation
9.4.1.1 The Commission has created one new category by the name HT V applicable to HT
consumers availing temporary supply, to simplify releasing of connections for temporary
supply for construction and other purpose.
9.4.1.2 The Commission has merged HT II A and II C, for the purpose of simplification of
billing and overall approach of the Commission to reduce the number of sub categories
and rationalisation of tariff categories, wherever possible.
9.4.2 Retail Tariff Design
9.4.2.1 The Commission has accepted other suggestions of TANGEDCO with regards to Energy
Charges, Demand Charges and Fixed Charges, except mentioned below:




289



S.
No
Category Tariff
Proposed Tariff Approved Tariff
Energy
Charge
s
Rs./kw
h
Demand
Charges
Rs./KVA
/ Month
Fixed Charges
Rs/KW/Month
Energy
Charge
s
Rs./kwh
Demand
Charges
Rs./KVA
/ Month
Fixed Charges
Rs/KW/Mont
h
I
HIGH
TENSION


Industries
IA 5.00 300 0 5.50 300 0

Railway
Traction
IB 5.00 300 0 5.50 250 0

Commercial
III 6.80 300 0 7.00 300 0

HT Temporary
Supply
9.50 300
II
LOW
TENSION
IA

LT Domestic
IA

For consumers who consume up to 50 units per month or 100 units bi monthly

0-50 units per
month or 0-
100 units bi
monthly
3.00 0
20 Rs/
Connection/
Month
2.60 0
10 Rs/
Connection/
Month
For consumers who consume from 51 units to 100 units per month or 101 to 200 units bi monthly

From 0-100
units per month
or 0 to 200
units for two
months
3.00 0
20 Rs/
Connection/
Month
2.80 0
10 Rs/
Connection/
Month

For consumers who consume from 101 units to 250 units per month or 201 to 500 units bi monthly

From 0-100
units per month
or 0 to 200
units for two
months
3.00 0
20 Rs/
Connection/
Month
3.00 0
15 Rs/
Connection/
Month

From 101 to
250 units per
month or 201
to 500 units for
two months
4.00 0
20 Rs/
Connection/
Month
4.00 0
15 Rs/
Connection/
Month

LT Bulk
supply IC 4.00 0 0 4.00 0
40 Rs./
Connection/
Month

LT Industries
IIIB 5.50
100
Rs/kw/Month
5.50
30
Rs/kw/Month

L.T.
Commercial
V
0-100 units 7.00 100 4.30 60

290



S.
No
Category Tariff
Proposed Tariff Approved Tariff
Energy
Charge
s
Rs./kw
h
Demand
Charges
Rs./KVA
/ Month
Fixed Charges
Rs/KW/Month
Energy
Charge
s
Rs./kwh
Demand
Charges
Rs./KVA
/ Month
Fixed Charges
Rs/KW/Mont
h
only Rs/kw/Month Rs/kw/Month

Consumers
consuming
above 100
units
permonth or
200 units
bimonthly
7.00
100
Rs/kw/Month
7.00
60
Rs/kw/Month
9.4.3 Detailed tariff Schedule has been provided at the end of this chapter.
9.4.4 Separate tariff for LTCT services
9.4.4.1 TANGEDCO has proposed separate tariff for LTCT services with higher fixed charges,
based on the rationale that the cost involved for the development of their infrastructure
facilities. Accordingly LTCT has been proposed to be increased for the tariff rates for the
HT services, LT services. While determining the tariff, the Commission is guided by
Section 62 (3) of Electricity Act 2003, which specifies as under:
(3) The Appropriate Commission shall not, while determining the tariff under this Act,
show undue preference to any consumer of electricity but may differentiate
according to the consumer's load factor, power factor, voltage, total consumption
of electricity during any specified period or the time at which the supply is required
or the geographical position of any area, the nature of supply and the purpose for
which the supply is required.
9.4.4.2 The Commission cannot differentiate between same class of consumers and hence, the
proposal of charging LTCT services a higher Tariff stands rejected.
9.4.5 Revenue from the Approved tariff
9.4.5.1 The Commission has computed the Revenue at Approved Tariff rates as below:


291



Table 227: Revenue from sale of Power at Existing Tariff and Approved Tariff for FY 2012-
13 (Rs Crore)
S.
No.

Category

Tariff
Existing Tariff Approved Tariff
%
Increase
Sales
Total
Revenue
ABR
Total
Revenue
ABR
MU
Rs
Crore
Rs/kWh
Rs
Crore
Rs/kWh %
I HIGH TENSION

Industries
IA 13545 7882 5.82 9914 7.32 26%

Railway Traction
IB 726 370 5.10 479 6.60 29%

Govt. and Govt.
aided educational
Instns. Etc.
IIA 882 426 4.82 503 5.71 18%

Private Educational
Institution
IIB(1) 131 72 5.47 91 6.91 26%

Cinema Theatre and
Studio
IIB(2) 112 61 5.48 92 8.20 50%

Places of Pub.
Worship
IIC 5 2 3.55 3 5.87 65%

Commercial
III 1908 1548 8.12 1777 9.32 15%

Lift Irrigation
IV 6 0 0.53 2 3.53 571%

HT Temporary
V 5 5 10.50 5 10.45 0%

Total HT
17320 10366 5.98 12866 7.43 24%
II
LOW TENSION

LT Domestic Total IA 18252 4522 2.48 6315 3.46 40%
Hut IB 617 18 0.29 154 2.50 755%
Bulk supply IC 11 4 4.00 4 4.00 0%

Public Lighting and
Water Supply
(village panchayat)
IIA 1018 346 3.40 560 5.50 62%

Public Lighting and
Water Supply (Town
panchayat)
II A 217 76 3.50 119 5.50 57%

Public Lighting and
Water Supply
(Municiapality/
Corporation)
IIA 390 136 3.50 214 5.50 57%

Govt and Govt aides
Educational Instns.
Etc.
IIB (1) 127 61 4.80 73 5.74 20%

292



S.
No.

Category

Tariff
Existing Tariff Approved Tariff
%
Increase
Sales
Total
Revenue
ABR
Total
Revenue
ABR
MU
Rs
Crore
Rs/kWh
Rs
Crore
Rs/kWh %

Private Educational
Ins.
IIB (2)
(i)
137 78 5.71 94 6.84 20%

Cinema Theatre and
Studio
IIB (2)
(ii)
117 66 5.65 87 7.40 31%

Places of Pub.
Worship
IIC 102 32 3.17 43 4.18 32%

Cottage and Tiny
Industries
126 36 2.82 53 4.19 49%
Power Looms IIIA 2 730 158 2.17 385 5.27 143%
Industries III B 4015 1982 4.94 2541 6.33 28%

L.T. Agriculture (till
installation of
Energy meter)
Rs./HP/Annum
IV 10601 281 0.27 1950 1.84 593%
L.T. Commercial V 5066 3291 6.50 3872 7.64 18%
L.T Temporary VI 15 16 10.50 16 10.50 0%
LT Total 41541 11105 2.67 16481 3.97 48%
Total 58861 21472 3.65 29347 4.99 37%

9.4.6 Fuel and Power Purchase Cost Adjustment (FPCA)
9.4.6.1 TANGEDCO in its petition has prayed for approving Fuel and Power Purchase Cost
Adjustment mechanism to enable TANGEDCO to pass through the cost associated with
the Fuel and Power Purchase variation.


293



9.4.6.2 TANGEDCO submitted that Section 62 (4) of the Electricity Act 2003 which states
that no tariff or part of any tariff may ordinarily be amended more frequently, than once
in a financial year, except in respect of any changes expressly permitted under the terms
of any fuel surcharge formula as may be specified.
9.4.6.3 TANGEDCO also submitted that provision 5.3(h) (4) of the Tariff policy provides as
follows:
Uncontrollable costs should be recovered speedily to ensure that future
consumers are not burdened with past costs. Uncontrollable costs would include
(but not limited to) fuel costs, costs on account of inflation, taxes and cess,
variations in power purchase unit costs including on account of hydro thermal
mix in case of adverse natural events,
9.4.6.4 TANGEDCO submitted that the Fuel Price Adjustment Charge may be recovered on a
quarterly basis by including it in the bill of current consumption charges. Fuel Price
Adjustment charges can be collected from all categories of consumers including
subsidized consumers and this amount can be included in the subsidy to be collected from
GOTN.
9.4.6.5 TANGEDCO proposed the following formula for Fuel Price Adjustment and
adjustment for Power Purchase Cost as given below:
Qa X (ARC APRC) + Qo (ARO-APRO) + PP (AR APR) / E
Where,
a) Qa Actual quantity of fuel consumed during the period of adjustment;
b) ARC Actual weighted average rate of the fuel used during the period of
adjustment.
c) APRC Weighted average rate of the fuel approved by the Commission.
d) Qo Quantity of oil used during the adjustment period (Gross generation X
specific oil consumption approved by the Commission).
e) ARO - Actual weighted average rate of the oil.

294



f) APRO Weighted average rate of the oil approved by the Commission.
g) PP Units purchased during the period of adjustment.
h) AR Actual Average rate of power purchased during the period of adjustment.
i) APR Average rate of power purchase approved by the Commission.
j) E Energy billed for retail sale during the period.
Note: The station heat rate as approved by the Commission is to be adopted for arriving
at the consumption of fuel.
It is submitted that above formula or any other suitable formula deemed to fit may kindly
be approved after making necessary amendments in the Tariff Regulations and hearing
views from the stake holders.
9.4.6.6 The Commission is of the opinion that the Fuel Price Adjustment charge formula would
enable the TANGEDCO to recover the actual cost of the fuel incurred and the actual cost
of the power purchase, if the same is at variance from the figures approved by the
Commission in this Tariff Order.
9.4.6.7 Section 62 (4) of the Electricity Act 2003 also mandates that the Commission to
provide for mechanism to pass through of variation of Fuel and Power Purchase cost by
specifying the Fuel surcharge formula.
9.4.6.8 In most of the comparable States like Maharashtra, Gujarat, Andhra Pradesh, Kerala,
etc, FPCA mechanism is in place.
9.4.6.9 The Commission in this Order is approving FPAC formulae to reflect change in fuel
cost for TANGEDCOs own Thermal Stations and Power Purchase from other sources
which are due to reasons beyond the control of TANGEDCO, the following is approved
by the Commission:
(1) Adjustment Amount
A= C
VC.GEN
+ C
VC.pp

A= Adjustment Amount (during this quarter)
C
VC.GEN
= Change in Variable Cost of TANGEDCOs thermal stations.

295



C
VC.pp
= Change in Power Purchase cost from other sources excluding own generation.
(2) Chargeable FPCA from the consumers
Metered Category
FPCA
M
= A
M
/ U
M
Un-Metered Category
FPCA
HP
= A
HP
/ L
HP

A
M
and A
HP
are to be arrived at by apportioning A on the basis of consumption of
metered and un-metered category.
U
M
is the number of units billed to metered consumers during quarter under
consideration
L
HP
is sum of the connected load of un-metered consumers at the end of each month for
the quarter under consideration.
(3) The approved formula is subject to the following:
i. Commission can review the formula at any stage.
ii. For levy of FPCA surcharge, petition containing the basis of
calculations/authenticated data shall be submitted by TANGEDCO by August,
November, February and May end each year for the FCA increases for the 1
st
, 2
nd
,
3
rd
and 4
th
quarter, respectively, of each year.
iii. The FPCA amount shall be calculated on the basis of norms fixed by the
Commission for various parameters including SHR, Transit loss of coal, Auxiliary
consumption at the thermal plants, T&D losses or any other parameter as may be
specified by the Commission.
iv. The FPCA for the first quarter of a financial year, i.e., from April to June shall be
worked out by TANGEDCO and submitted to the Commission by end of August
of the year and approved by the Commission by the end of September of the same
year so that FPCA is charged from October onwards. Similarly, FPCA for 2
nd

quarter of a financial year, i.e., from July to September shall be worked out by
TANGEDCO and submitted to the Commission by November of that year and
approved by the Commission by December of the same year, so that Fuel and
Power Purchase Cost Adjustment is charged from January onwards. Similar
schedule shall be followed for charging FCA for third and fourth quarters.

296



v. Any under recovery/over recovery in cost pertaining to FPCA would be trued up
based on the Audited accounts as a part of truing up exercise in the tariff
determination process.
9.5 The Commission inprincipally approves the implementation of FPCA mechanism in the
State of Tamil Nadu. However, the Commission directs to TANGEDCO to submit its
preparedness, implementation plan and sample FPCA calculations for the last quarter, for
which data is available, to the Commission for approval, within 30 days of issuance of
this Order.
9.6 Cost to Serve, Average Cost of Supply and Cross Subsidy:
9.6.1 These are inter-related issues. The provisions regarding these three issues are extensively
covered in the Order of Honble Appellate Tribunal of Electricity dated 11
th
June 2012 in
Appeal Nos. 57 of 2008, 155 of of 2007, 125 of 2008, 45 of 2010, 40 of 2010, 196 of
2009, 199 of 2009, 163 of 2010, 6 of 2011 and 144 of 2010. Para 40 of the said order is
relevant and is extracted below.
17. Section 61(g) of the 2003 Act stipulates that the tariff should progressively
reflect the cost of supply and cross subsidies should be reduced within the time
period specified by the State Commission. The Tariff Policy stipulates the target
for achieving this objective latest by the end of year 2010-11, such that the tariffs
are within 20% of the average cost of supply. In this connection, it would be
worthwhile to examine the original provision of the Section 61(g). The original
provision of Section 61(g) the tariff progressively reflects the cost of supply of
electricity and also, reduces and eliminates cross subsidies within the period to be
specified by the Appropriate Commission was replaced by the tariff
progressively reflects the cost of supply of electricity and also reduces cross
subsidies in the manner specified by the Appropriate Commission by an
amendment under Electricity (Amendment) Act, 2007 w.e.f. 15.6.2007. Thus the
intention of the Parliament in amending the above provisions of the Act by
removing provision for elimination of cross subsidies appears to be that the cross
subsidies may be reduced but may not have to be eliminated. The tariff should
progressively reflect the cost of supply but at the same time the cross subsidy,
though may be reduced, may not be eliminated. If strict commercial principles are
followed, then the tariffs have to be based on the cost to supply a consumer

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category. However, it is not the intent of the Act after the amendment in the year
2007 (Act 26 of 2007) that the tariff should be the mirror image of the cost of
supply of electricity to a category of consumer.
18. Section 62(2) provides for the factors on which the tariffs of the various
consumers can be differentiated. Some of these factors like load factor, power
factor, voltage, total electricity consumption during any specified period or time
or geographical position also affects the cost of supply to the consumer. Due
weightage can be given in the tariffs to these factor to differentiate the tariffs.
19. The National Electricity Policy provides for reducing the cross subsidies
progressively and gradually. The gradual reduction is envisaged to avoid tariff
shock to the subsidized categories of consumers. It also provides for subsidized
tariff for consumers below poverty line for minimum level of support. Cross
subsidy for such categories of consumers has to be necessarily provided by the
subsidizing consumers.
20. The Tariff Policy clearly stipulates that for achieving the objective, the State
Commission has not been able to establish that the tariff progressively reflects the
cost of supply of electricity, latest by the end of the year 2010-11, the tariffs
should be within 20% of the average cost of supply, for which the State
Commission would notify a road-map. The road map would also have
intermediate milestones for reduction of cross subsidy.
21. According to the Tariff Regulation 7 (c) (iii) of the State Commission the cross
subsidy has to be computed as difference between cost-to-serve a category of
consumer and average tariff realization of that category.
22. after cogent reading of all the above provisions of the Act, the Policy and the
Regulations we infer the following:

i) The cross subsidy for a consumer category is the difference between cost to
serve that category of consumers and average tariff realization of that
category of consumers. While the cross-subsidies have to be reduced
progressively and gradually to avoid tariff shock to the subsidized categories,
the cross-subsidies may not be eliminated.

ii) The tariff for different categories of consumer may progressively reflect the
cost of electricity to the consumer category but may not be a mirror image of
cost to supply to the respective consumer categories.

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iii) Tariff for consumers below the poverty line will be at least 50% of the average
cost of supply.

iv) The tariffs should be within 20% of the average cost of supply by the end of
2010-11 to achieve the objective that the tariff progressively reflects the cost
of supply of electricity.

v) The cross subsidies may gradually be reduced but should not be increased for a
category of subsidizing consumer.

vi) The tariffs can be differentiated according to the consumers load factor,
power factor, voltage, total consumption of electricity during specified period
or the time or the geographical location, the nature of supply and the purpose
for which electricity is required.
Thus, if the cross subsidy calculated on the basis of cost of supply to the consumer
category is not increased but reduced gradually, the tariff of consumer categories
is within 20% of the average cost of supply except the consumers below the
poverty line, tariffs of different categories of consumers are differentiated only
according to the factors given in Section 62(3) and there is no tariff shock to any
category of consumer, no prejudice would have been caused to any category of
consumers with regard to the issues of cross subsidy and cost of supply raised in
this appeal.
29. The State Commission has indicated in the impugned order that the voltage-
wise cost determination is the first step in determining the consumer-wise cost of
supply but has expressed difficulties in determination of voltage-wise cost of
supply due to non-segregation of costs incurred by the licensee related to different
voltage levels and determination of technical and commercial losses at different
voltage levels due to non-availability of meters. The State Commission has also
noted that the data submitted by the distribution licensee does not have technical
or commercial data support.
30. It is regretted that even after six years of formation of the Regulations data for
the distribution losses. The position of metering in the distribution system of
respondent no. 2 is pathetic. Only about 1/4th of 11 KV feeders have been
metered and very small numbers of transformers have been provided with meters.

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Only 68% of the consumer meters are functional in the distribution system as
indicated in Table-37 of the impugned order. It is also noticed that a large
number of meters are old electro mechanical meter which are not functioning.
This is in contravention to Section 55 of the Act. Section 55(1) specifies that no
licensee shall supply electricity after the expiry of two years from the appointed
data, except through installation of a correct meter in accordance with the
Regulations of the Central Electricity Authority. According to Section 55(2)
meters have to be provided for the purpose of accounting and audit. According to
Section 8.2.1 (2) of the Tariff Policy, the State Commission has to undertake
independent assessment of baseline data for various parameters for every
distribution circle of the licensee and this exercise should be completed by March,
2007. In our opinion the State Commission can not be a silent spectator to the
violation of the provisions of the Act. In view of large scale installation of meters,
the State Commission should immediately direct the distribution licensee to
submit a capital scheme for installation of consumer and energy audit meters
including replacement of defective energy meters with the correct meters within a
reasonable time schedule to be decided by the State Commission. The State
Commission may ensure that the meters are installed by the distribution licensee
according to the approved metering scheme and the specified schedule. In the
meantime, the State Commission should institute system studies for the
distribution system with the available load data to assess the technical
distribution losses at different voltage levels.
31. We appreciate that the determination of cost of supply to different categories
of consumers is a difficult exercise in view of non-availability of metering data
and segregation of the network costs. However, it will not be prudent to wait
indefinitely for availability of the entire data and it would be advisable to initiate
a simple formulation which could take into account the major cost element to a
great extent reflect the cost of supply. There is no need to make distinction
between the distribution charges of identical consumers connected at different
nodes in the distribution network. It would be adequate to determine the voltage-
wise cost of supply taking into account the major cost element which would be
applicable to all the categories of consumers connected to the same voltage level
at different locations in the distribution system. Since the State Commission has
expressed difficulties in determining voltage wise cost of supply, we would like to
give necessary directions in this regard.

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32. Ideally, the network costs can be split into the partial costs of the different
voltage level and the cost of supply at a particular voltage level is the cost at that
voltage level and upstream network. However, in the absence of segregated
network costs, it would be prudent to work out the voltage-wise cost of supply
taking into account the distribution losses at different voltage levels as a first
major step in the right direction. As power purchase cost is a major component of
the tariff, apportioning the power purchase cost at different voltage levels taking
into account the distribution losses at the relevant voltage level and the upstream
system will facilitate determination of voltage wise cost of supply, though not very
accurate, but a simple and practical method to reflect the actual cost of supply.
33. The technical distribution system losses in the distribution network can be
assessed by carrying out system studies based on the available load data. Some
difficulty might be faced in reflecting the entire distribution system at 11 KV and
0.4 KV due to vastness of data. This could be simplified by carrying out field
studies with representative feeders of the various consumer mix prevailing in the
distribution system. However, the actual distribution losses allowed in the ARR
which include the commercial losses will be more than the technical losses
determined by the system studies. Therefore, the difference between the losses
allowed in the ARR and that determined by the system studies may have to be
apportioned to different voltage levels in proportion to the annual gross energy
consumption at the respective voltage level. The annual gross energy
consumption at a voltage level will be the sum of energy consumption of all
consumer categories connected at that voltage plus the technical distribution
losses corresponding to that voltage level as worked out by system studies. In this
manner, the total losses allowed in the ARR can be apportioned to different
voltage levels including the EHT consumers directly connected to the
transmission system of GRIDCO. The cost of supply of the appellants category
who are connected to the 220/132 KV voltage may have zero technical losses but
will have a component of apportioned distribution losses due to difference
between the loss level allowed in ARR (which includes commercial losses) and the
technical losses determined by the system studies, which they have to bear as
consumers of the distribution licensee.
34. Thus Power Purchase Cost which is the major component of tariff can be
segregated for different voltage levels taking into account the transmission and
distribution losses, both commercial and technical, for the relevant voltage level

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and upstream system. As segregated network costs are not available, all the other
costs such as Return on Equity, Interest on Loan, depreciation, interest on
working capital and O&M costs can be pooled and apportioned equitably, on
pro-rata basis, to all the voltage levels including the appellants category to
determine the cost of supply. Segregating Power Purchase cost taking into
account voltage-wise transmission and distribution losses will be a major step in
the right direction for determining the actual cost of supply to various consumer
categories. All consumer categories connected to the same voltage will have the
same cost of supply. Further, refinements in formulation for cost of supply can be
done gradually when more data is available.
9.6.2 Cost to Serve, Average Cost of Supply and Cross Subsidy are also discussed extensively
in the above referred Order of the Honble Appellate Tribunal of Electricity in
paragraphs, 36, 37, 38 and 39. The Honble Appellate Tribunal of Electricity had
expressed the opinion that consequent to the Electricity (Amendment) Act 2003 with
effect from 15-6-2007 elimination of cross subsidy has been omitted which implies that
the tariff for a particular category of consumers need not be the mirror image of cost to
serve. Provisions of Tariff policy envisage that the tariff for various categories of
consumers shall be within +/- 20% of the average cost of service. A conjoint reading of
the Electricity Act 2003 after the amendment in the year 2007 with the other provisions
of the Act as well as the Tariff Policy, the intent of the Act seems to be that the tariff
need not be the mirror image of the cost of supply of electricity to a category of
consumers. The applicable portion of the Judgment which is contained in para 22 of the
decision of the Honble Appellate Tribunal of Electricity in Appeals No. 102, 103 and
112 of 2010 rendered on 30
th
May 2011 is extracted below:
22. After cogent reading of all the above provisions of the Act, the Policy and
the Regulations we infer the following:
i. The cross subsidy for a consumer category is the difference
between cost to serve that category of consumers and average
tariff realization of that category of consumers. While the cross-
subsidies have to be reduced progressively and gradually to avoid
tariff shock to the subsidized categories, the cross-subsidies may
not be eliminated.
ii. The tariff for different categories of consumer may progressively
reflect the cost of electricity to the consumer category but may not
be a mirror image of cost to supply to the respective consumer
categories.

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iii. Tariff for consumers below the poverty line will be at least 50% of
the average cost of supply.
iv. The tariffs should be within 20% of the average cost of supply by
the end of 2010-11 to achieve the objective that the tariff
progressively reflects the cost of supply of electricity.
v. The cross subsidies may gradually be reduced but should not be
increased for a category of subsidizing consumer.
vi. The tariffs can be differentiated according to the consumers load
factor, power factor, voltage, total consumption of electricity
during specified period or the time or the geographical location,
the nature of supply and the purpose for which electricity is
required.
Thus, if the cross subsidy calculated on the basis of cost of supply to the
consumer category is not increased but reduced gradually, the tariff of
consumer categories is within 20% of the average cost of supply except
the consumers below the poverty line, tariffs of different categories of
consumers are differentiated only according to the factors given in Section
62(3) and there is no tariff shock to any category of consumer, no
prejudice would have been caused to any category of consumers with
regard to the issues of cross subsidy and cost of supply raised in this
appeal.
29. The State Commission has indicated in the impugned order that the
voltage-wise cost determination is the first step in determining the
consumer-wise cost of supply but has expressed difficulties in
determination of voltage-wise cost of supply due to non-segregation of
costs incurred by the licensee related to different voltage levels and
determination of technical and commercial losses at different voltage
levels due to non-availability of meters. The State Commission has also
noted that the data submitted by the distribution licensee does not have
technical or commercial data support.
From the above it can be seen that the following are the tests for deciding the tariff in
compliance of the Electricity Act, Tariff Policy and Regulations of the Commission.
1. As a first major step in the right direction, the voltage wise cost of supply shall be
calculated based on available data.
2. The Cost of service for each category of consumer will have to be worked out
separately.
3. The cross subsidy should be going down from year to year.

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4. The tariff fixed for various categories should be within +/- 20% of the average cost of
service.
5. Tariff may be a mirror image of cost to supply to the respective consumer categories.
6. Tariff for different categories of consumers are differentiated only according to the
factors given in Section 62(3).
7. There is no tariff shock to any category of consumers.
9.6.3 If the above are carried out and the tariff decided accordingly, no prejudice would have
been caused to any category of consumers with regard to the issues of cross-subsidy and
cost of supply. The TANGEDCO has not submitted the voltage-wise cost of supply of
service calculations.
9.6.4 The Commission noted that sufficient data is not available for metering and segregation
of the network costs for determination of cost of supply for different categories of
consumers. However, the Commission is of the view that it would be advisable to initiate
a simple formulation which could take into account the major cost element to reflect the
cost of supply.
9.6.5 The Commission in this Order has estimated the voltage-wise cost of supply taking into
account the major cost element which would be applicable to all the categories of
consumers connected to the same voltage level at different locations in the distribution
system. The method has been allocated based on the following steps:
Step-1: The Commission has segregated the network costs into the partial costs of the
different voltage level. The cost of supply at a particular voltage level is the cost at that
voltage level and upstream network. However, in the absence of segregated network
costs, the Commission has to work out the voltage-wise network costs based on the
Network Details provided by the TANGEDCO and applied cost benchmarks data
provided in the Study Report on Capital Costs Benchmarks for Distribution Business
published by Forum of Regulator prepared by Administrative Staff College of India
(ASCI) for purpose of estimation of contribution of each voltage level in the Aggregate
revenue requirement of TANGEDCO. The following data has been used for purpose for
estimation of Voltage wise contribution:




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Table 228: Network Details of TANGEDCO and Cost benchmarks

Voltage Ratings

Line Length ASCI Report 33 KV Substation ASCI Report
Ckt-km Rs lakh/km Nos.
Rs Lakh per
Substation
33 kV OH* 6845 3.6 516 240
33 kV UG** 884 30
22 kV OH 40430 3.6
22 kV UG 19 30
11 kV OH 103559 2.5
11 kV UG 3085 20
LT OH 554077 2.4
LT kV UG 10743 5
*Overhead Line **Underground Line
Table 229: Distribution Sub-Stations details

Voltage
Levels

Number of
Transformer
Capacity
Benchmark
Cost
Nos. kVA
Rs Lakh/
Substation
11 kV 7454 3727000 8.00
22 KV 1103 551500 8.00
11 kV 25910 6477500 3.20
22 KV 987 246750 3.20
11 kV 496 99200 3.20
22 KV 10917 2183400 3.20
11 kV 488 73200 2.20
22 KV 200 30000 2.20
11 kV 78976 7897600 2.20
22 KV 31285 3128500 2.20
11 kV 2083 156225 2.00
22 KV 1214 91050 2.00
11 kV 26529 1671327 2.00
22 KV 9840 619920 2.00
11 kV 2671 133550 2.00
22 KV 1562 78100 2.00
11 kV 6230 138784 1.40
22 KV 2126 55895 1.40
11 kV 150837 20374386
22 KV 59234 6985115
Total 210071 27359501


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The Commission has applied reasonable engineering estimation based on its experience
to arrive at voltage wise cost allocation shown in the table below:
Table 230: Estimated Voltage wise Cost allocation
Voltage Level Allocation of Network Cost
33 kV and above 9%
11 kV 7%
LT 84%

Step-2: The Commission has considered the allocation of power purchase cost by
apportioning the power purchase cost at different voltage levels taking into account the
distribution losses at the relevant voltage level and the upstream system. The
Commission has computed the power purchase requirement at particular voltage level by
grossing up energy consumption of all consumer categories connected at that voltage plus
the technical distribution losses corresponding to that voltage level. The Commission has
estimated T&D loss at various voltage level based on reasonable assumption on the
voltage wise T&D loss in its Petition. In the absence of voltage wise sales, Sales at
various voltage levels have been allocated to various voltage level based on reasonable
assumptions.
Table 231: Voltage wise T&D loss
Voltage Level TANGEDCO Commission
230 kV 0.95% 0.95%
110kV 1.50% 1.00%
33 kV 1.50% 1.10%
22 kV 2.50% 2.50%
11 kV 3.00% 4.50%
LT 7.35% 14.91%

Based on above data, the Commission has computed voltage wise cost to serve which is
as under:
Table 232: Voltage wise Cost to serve
Voltage Level
Assumed
Loss Level
Sales
Power
Purchase
requirement
Average
PP Cost
Power Purchase Cost
Apportionment
Energy
related
Cost
% MU MU Rs/kWh Rs Crore Rs/kWh
33 kV and above 1.10% 12943 13344 2.91 3886 3.00
11 kV 4.50% 4372 4721 2.91 1375 3.14
LT 14.91% 41547 52719 2.91 15353 3.70
16.8% 58861 70784 20614

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Voltage Level
Sales
Allocation
of
Network
Cost
Demand related
Cost
Energy
related
Cost
Voltage wise Cost
to Serve
MU %
Rs
Crore
Rs/kWh Rs/kWh
Rs
Crore
Rs/kWh
33 kV and above 12943 9% 794 0.61 3.00 4680 3.62
11 kV 4372 7% 644 1.47 3.14 2019 4.62
LT 41547 84% 7294 1.76 3.70 22647 5.45
58861 100% 8732 29346 4.99

9.6.6 The Commission recognizes that this method is not very accurate, but this is a simple and
practical method to reflect the actual cost of supply, in absence of requisite data to
calculate the accurate cost of supply for each category of consumer. However, the
Commission recognises the importance of carrying out such an exercise in detail and
enables itself with a tool to test the retail tariff.
9.6.7 The Commission is also of the opinion that such an exercise will require selection of a
implementable methodology out of various options of working out Cost to Serve, viz.,
embedded, average, marginal etc., with various options of choice of system peak, i.e.,
single coincident peak-method, 12-coincident peak method, average excess method, etc.
The methodology for allocating costs attributed especially to demand would also have
to be examined from different methods like coincident peak method, energy weightment
method, etc., with various options. Selection of peak will largely depend on the
TANGEDCOs annual load curve including analysis of peak hours. Energy allocation
factor is required to be worked out using allocators based on peak energy consumption
and off-peak energy consumption factor. Extensive data collection exercise has to carried
out which will include in a ideal scenario, a 12-month load profile information of each
consumer category measured at consumer premises whereas the non-ideal solution could
be to profile the load on pre-dominantly domestic (mixed) 11kV feeders. Gathering of
load data will require appropriate statistical selection procedure so that the data is
representative of the population at large. It will be imperative to first determine the
criteria for selection of sample data for existing data as well as ideal data.


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9.6.8 Since, the exercise requires extensive data collection exercise for computing accurate cost
of supply, the Commission directs TANGEDCO to submit a study report on computation
of consumer category wise and voltage wise cost to serve (CoS) along with the basis of
allocation of different costs and losses to various consumer categories at various voltage
levels. The costs for this purpose shall be Demand Related Costs, Energy Related Costs,
Service Related Costs, and Allocation of Residual Costs etc., which shall be examined by
the Commission and approved with such modifications as it may deem necessary or
consider an alternate computation. The Commission also directs TANGEDCO to submit
the action taken report within 45 days of the issuance of this report.

9.7 Average Cost of Supply and Cross subsidy reduction
9.7.1 The prevailing cross-subsidy and the reduction in cross-subsidy considered by the
Commission are given in the Table below:
Table 233: Average Cost of Supply and Cross subsidy reduction
Categories
Average
Cost of
Supply
Tariff as
per
Tariff
Order
dated
31.7.2010
Average
Billing
Rate-
Approve
Tariff
Ratio of Average Billing Rate to
Average Cost of Supply
Last
Tariff
Order
Existing
Tariff to
Current
ACOS
Revised
Tariff to
Current
ACOS
HIGH TENSION
Industries including railway
traction
4.99 5.82 7.32 104% 117% 147%
Railway Traction 4.99 5.10 6.60 101% 102% 132%
Government and aided
educational institution
4.99 4.82 5.71 97% 97% 114%
Private educational
institutions
4.99 5.47 6.91 111% 110% 139%
Cinema Theatre & Studios 4.99 5.48 8.20 111% 110% 165%
Places of Pub. Worship 4.99 3.55 5.87 69% 71% 118%
Commercial 4.99 8.12 9.32 147% 163% 187%
Lift Irrigation 4.99 0.53 3.53 10% 11% 71%
HT Total 4.99 5.98 7.43 108% 120% 149%

LOW TENSION
Domestic 4.99 2.48 3.46 51% 50% 69%

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Categories
Average
Cost of
Supply
Tariff as
per
Tariff
Order
dated
31.7.2010
Average
Billing
Rate-
Approve
Tariff
Ratio of Average Billing Rate to
Average Cost of Supply
Last
Tariff
Order
Existing
Tariff to
Current
ACOS
Revised
Tariff to
Current
ACOS
Huts 4.99 0.29 2.50 8% 6% 50%
Bulk Supply 4.99 4.00 4.00 84% 80% 80%
Public Lighting 4.99 3.44 5.50 72% 69% 110%
Government and aided
educational institution
4.99 4.80 5.74 102% 96% 115%
Private educational
institutions
4.99 5.71 6.84 116% 115% 137%
Cinema Theatre & Studios 4.99 5.65 7.40 116% 113% 148%
Places of Pub. Worship 4.99 3.17 4.18 66% 64% 84%
Cottage and Tiny Industries 4.99 2.82 4.19 57% 57% 84%
Power Loom 4.99 2.17 5.27 43% 43% 106%
Industries 4.99 4.94 6.33 103% 99% 127%
Agriculture 4.99 0.27 1.84 5% 5% 37%
Commercial 4.99 6.50 7.64 141% 130% 153%
Temporary Supply 4.99 10.50 10.50 220% 211% 211%
Total LT 4.99 2.67 3.97 54% 54% 80%
Total HT and LT 4.99 3.65 4.99 72% 73% 100%

9.7.2 The Commission notes that the present level of cross subsidisation of LT category
consumers has been brought down from 46% to 20%, which is a huge shift towards the
final goal of +20% of Average Cost of Supply.
9.7.3 Retail Tariff in State of Tamil Nadu was not revised for a period from FY 2003-04 to FY
2009-10, on account of non filing of the tariff petition by erstwhile TNEB. Increase in
average cost of supply has been sought by TANGEDCO, in this Tariff Petition. Cross-
subsidy has been in existence historically even in the period where there was no tariff
revision. The Commission also observes that tariff that was charged to most of the
categories of consumers was below average cost of supply. Hence, now when the
TANGEDCO has sought actual pass through of revenue gap in the form of Tariff
Increase and Regulatory Asset, the impact on each category of consumers is significant.
The Commission has attempted to reduce the cross-subsidy between the consumer
categories in this Order, by rationalising the tariff for subsidised categories and suitably

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adjusting the tariff for subsidising categories, vis--vis the prevailing average cost of
supply, while at the same time, trying to ensure that there is no tariff shock to any
consumer category. However, since the average cost of supply has been increasing
steadily, the average tariff increase required to meet the revenue gap is also increasing,
and hence, the subsidising consumers have not been able to experience tariff reduction in
absolute terms.
9.7.4 The Commission also noted that the sales towards wheeling were not considered while
approving sales of HT category consumers, which had a negative impact on consumption
mix and thereby reduced the scope for further reduction of cross-subsidy as it may have
to led to a tariff shock in the subsidised categories.
9.7.5 While the tariffs have been determined such that the revenue gap considered for the year
is met entirely through the revision in tariffs, it is possible that the actual revenue earned
by TANGEDCO may be higher or lower than that considered by the Commission, on
account of the re-categorisation and creation of new consumer categories/sub-categories,
etc. The revenue shortfall/surplus, if any, will be trued up at the time of truing up for FY
2012-13.
9.8 Regulatory Asset
9.8.1 The Government has informed that they have in-principle agreed with the request of the
Commission for amortization of the Regulatory Asset. Government has also informed
that the exact details and mechanism will be worked out in conjunction with tariff
revision and TANGEDCOs improvement due to internal savings. The Regulatory Asset
calculated in this Order is an estimate because the provisions for the year 2012 13 are
again based on estimates. Even in 2011 -12 some of the expenses for part of the year
Viz., 3 months Viz., last quarter is based on estimates. In view of this, the exact
Regulatory Asset would be known when the next tariff Order is taken up. The internal
savings of TANGEDCO would also be known only at that time.
9.8.2 Under these circumstances, the Regulatory Asset is proposed to be amortized over a
period of 5 years commencing from the year 2013-14 onwards. Once the Regulatory
Asset is arrived at, 1/5
th
of the Regulatory Asset would be amortized along with the
carrying cost. When the tariff order for 2014 15 is done, the Regulatory Asset would
be re-worked out and 1/4
th
of such Regulatory Asset would be amortized in that tariff

310



order along with that cost and so on until the entire Regulatory Asset is amortized. The
carrying cost would correspond to the weighted average rate of interest for medium /long
term loans of TANGEDCO in the corresponding year in which the amortization of the
Regulatory Asset is done. The amortization is in-principle approved to be met by
Government of Tamil Nadu as per their letter (Ms.) No. 32 dated 25-03-2012 as enclosed
in Ann IX. The Commission is of the view that creation of Regulatory Asset could not be
avoided in view of the accumulation of Regulatory Asset over a period due to
phenomenal load growth, less addition to the generating capacity, high power purchase
costs, increase in costs and non filing of tariff petition. If the tariff was to be increased
for the entire revenue gap it would have resulted in a tariff shock to all categories of
consumers. It is also to be noted that the current tariff hike is to the tune of Rs 7875
Crore which translates into 37% percentage over the previous tariff on an average.
9.9 Tariff Rationalisation
9.9.1 Monthly Minimum charges
9.9.1.1 Some of consumers have claimed that minimum charges presently being realized
from them are not justified and have demanded that the same should be done
away with
9.9.1.2 It has been argued on behalf of TANGEDCO that abolishing minimum charges
could cause revenue loss to TANGEDCO.
9.9.1.3 TANGEDCO in its tariff proposal has proposed introduction of fixed charges on
connected load basis for LT categories.
9.9.1.4 Levy of minimum charges is often justified by claiming that it helps TANGEDCO
to recover its cost towards O&M costs towards a consumer, when the consumer
is drawing power below the level of minimum charges.
9.9.1.5 This argument really does not stand close scrutiny. TANGEDCOs entire fixed
costs, including O&M cost and the cost it incurs by way of commitment charges
for purchase of power from generating companies, are recovered through Tariffs
fixed by the Commission. Therefore, no part of such fixed costs remains to be
recovered from defaulting consumers through minimum charges.

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9.9.1.6 The Commission is of the view that as about 60% of the Petitioners costs is fixed
in nature, recovery of some minimum portion of fixed costs should be allowed
through fixed charges.
9.9.1.7 Further Section 45(3) of the Electricity Act, 2003 provides for levy of fixed
charges. The relevant section is reproduced below:
The charges for electricity supplied by a distribution licensee may include:
(a) a fixed charge in addition to the charge for the actual electricity supplied ;
(b) a rent or other charges in respect of any electric meter or electrical plant
provided by the distribution licensee.
9.9.1.8 The Commission is of the opinion that both fixed charges/demand charges and
Minimum charges are provided as a mechanism of recovery of fixed cost of a
distribution licensee. Hence once part of fixed cost recovery is provided through
fixed charges/demand charge, there is no need to additionally provide for
minimum charges.
9.9.1.9 TANGEDCOs entire fixed costs, including the cost it incurs by way of
commitment charges for purchase of power from generating companies, are
recovered through Tariffs fixed by the Commission. Therefore, no part of such
fixed costs remains to be recovered from defaulting consumers through minimum
charges. Further, TANGEDCO has projected higher sales figures for FY 2012-13
as compared to FY 2011-12. In such a situation, if some consumers do not
consume a minimum specified quantity of electricity, since the overall sales are
much higher, TANGEDCOs fixed cost would get fully recovered.

9.9.1.10 Also the levy of minimum charges encourages avoidable consumption which
defeats the important objective of Energy Conservation on which much emphasis
is rightly being laid.
9.9.1.11 For the reasons given above, the Commission has abolished minimum charges for
all consumers in the State.


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9.9.2 IT Industries
9.9.2.1 Some of the consumers during the public hearings objected to the categorisation
of IT Industry under HT I A/LT III B and suggested this benefit should be rolled
back. Some of consumers also submitted that nature of usage of electricity by IT
Industry is similar to the commercial offices presently categorised under HT
III/LT Commercial and same treatment should be provided for IT Industry also.
9.9.2.2 The Commission in its last Tariff Order ruled to adopt HT Tariff I A / LT Tariff
III B for Information Technology Services as defined in the Information
Communication Policy (ICT Policy) 2008 of Government of Tamil Nadu, based
on the letter dated 22-7-2010 from the Chairman, TNEB.
9.9.2.3 The definition as given in ICT Policy for IT Industries, 2008 of GOTN is
reproduced below:
IT services are broadly defined as systems integration, processing
services, information services outsourcing, packaged software support
and installation, hardware support and installation.
9.9.2.4 The Commission in its last tariff Order had ruled that HT / LT services of IT
Enabled Services / private communication providers will be charged under HT
Tariff III / LT Tariff V.
9.9.2.5 The Commission has looked into the categorisation and dispensation of IT
Industry in some of leading IT destinations in India.
S. No Particulars HT Industry Categorization
1 Karnataka
Information Technology Industries engaged in development of Hardware &
Software as certified by the IT & BT Department of GOK/GOI
2
Andhra
Pradesh
Information Technology units identified and approved by theConsultative
Committee on IT industry (CCITI) constituted by Govt. of AP
3 Maharashtra
IT & ITeS will be charged at industrial rates (HT and LT rates, as applicable),
without getting into the details of whether mobile towers and commercial
broadcasting towers and all other similar activities are covered under the
Government of Maharashtra Policy on IT & ITeS
4 Kerala Software development units


313



9.9.2.6 Hence, it can be observed that the IT Industry is categorised under HT Industry in
the comparable States.
9.9.2.7 The Commission rules to continue HT Tariff I A / LT Tariff III B for Information
Technology Services (ITES) as defined in the Information Communication
Policy (ICT Policy) 2008 of Government of Tamil Nadu and HT / LT services of
private communication providers to be charged under HT Tariff III / LT Tariff V.
9.9.3 PF Incentive
9.9.3.1 The Commission has received comments from the industrial consumers
supporting for restarting the incentive for maintaining near about unity power
factor. A view was also expressed that most of the consumers would maintain the
power factor at around 0.9 lag and therefore TANGEDCO will be the most
affected party in the discontinuance of the incentive.
9.9.3.2 Regulation 12 of TNERC Tariff Regulations states as under:
12. Power Factor
The Commission may direct certain categories of consumers to maintain
power factor at a prescribed level and allow incentive / disincentive for
maintaining above / below the prescribed level Emphasis Added
9.9.3.3 From the above mentioned Regulations, it is clear that incentive only get
prescribed vis-a-vis target level set by the Commission. Since, the Commission
has no intention to prescribe any target PF for incentive considering the inbuilt
incentive to the consumer for maintaining high power factor, the Commission
rules that the PF incentive need not be reinstated, as sought by various categories
of consumers.


314



9.9.4 TOD Tariff
9.9.4.1 TANGEDCO submitted to increase the Peak Hour timings from 6.00 A.M to 9.00
A.M and 6.00 P.M to 9.P.M. to 6.00 A.M to 9.00 A.M and 6.00 P.M to
11.00.P.M.
9.9.4.2 The Commission is of the opinion that sufficient data is not available to assess the
impact of this additional hour of Peak hours, and hence the Commission is
continuing with the existing TOD slabs. The TANGEDCO is directed to submit
data on ToD consumption alongwith the subsequent Tariff Application for all
consumers where ToD meters have been installed. Depending on the impact and
response to the ToD tariffs, the Commission may consider extending the ToD
tariffs duration.
9.9.4.3 The Commission does not agree with the suggestion that peak hour tariff and
night hour rebate should be treated on equal footing. During the peak hours,
marginal cost of power procurement is very high and being in revenue neutral
regulated business, a pass through mechanism has to be made available to the
Utility to recover its cost and also to disincentivise the avoidable consumption
during the period. Though for the night hours the Utility would be operating its
base load plants to cater to the off peak load, which are built in to the tariff of the
consumer, there is no equitable avoidance of cost for the Utility vis--vis peak
hour consumption.
9.10 Wheeling Charge
9.10.1 TANGEDCO in its Petition has submitted that the total Annual Distribution charges for
FY 2012-13 as under:
Table 234: Distribution Charges as submitted by TANGEDCO
S. No. Particular Rs Lakh
1 Net O&M Expenses 283710.67
2 Interest on Loan 335459.26
3 Depreciation 35161.30
4 Return on equity 20788.61
4 Other debits 2914.72
5 Prior Period Charges 0

315



S. No. Particular Rs Lakh
6 Annual Wheeling Charges 678034.54
7 Less: Interest on Security Deposit 31916
8 Net Annual Distribution Charges 646118.37

9.10.2 TANGEDCO has further submitted that the annual wheeling charges are required to be
allocated between HT and LT in the ratio of HT and LT network, which is as under:
9.10.2.1 As on 31-03-2010, the length of HT and LT lines were in the ratio of 24:76 (1.69
lakh ckt. km: 5.39 lakh ckt. km.)
9.10.2.2 The annual wheeling charges are allocated among HT and LT as below:
Table 235: Allocation of Distribution Charges to HT and LT Network
Category Rs Lakh
HT 155068
LT 491050
Total 646118

9.10.3 The projected units sold through the distribution system during the control period and the
wheeling charges for the control period shall be as below:
Table 236: Average Cost of Supply and Cross subsidy reduction
S. No. Details 2012-13
1 Projected energy fed into the grid (in MU) 86564
2 Transmission loss up to 110 kV (in %) 2.95%
3 Energy sent out into distribution network (in MU) 84010
4 Less: Energy consumed up to 110 kV (in MU) 5840
5 Energy fed into 33 kV and below (in MU) 78170
6 Annual wheeling charges (in Rs. Lakh) 155068
7 Wheeling charges per unit (in Paise/kWh) 19.84
9.10.4 The Commission has adopted same loss level at various voltage levels as submitted by
TANGEDCO in its Petition, for the purpose of determination of wheeling charge, in
absence voltage wise segregation of losses based on actual meterin. The wheeling charge
as approved by the Commission is as under:
Particulars Unit TANGEDCO Approved
Energy Injected at the Transmission MU 86564 70784

316



Particulars Unit TANGEDCO Approved
Periphery
Transmission loss upto 110 kV % 2.95% 2.95%
Energy Sent Out in to distribution Network MU 84010 68696
Less Energy consumed upto 33 kV Network MU 5840 4775
Less lossed up to 33 kV network % 6.95% 6.95%
Energy fed to the Distribution Periphery MU 78170 63921
Annual Wheeling Charges Rs Crore 1551 1488
Energy sent into Distribution Network in
MU Paise/kWh 19.84 23.27

9.11 Determination of Cross-Subsidy Surcharge
9.11.1 Provisos to Section 42 (2) of Electricity Act 2003 stipulates as under:
Provided that such Open Access shall be allowed on payment of a surcharge in
addition to the charges for wheeling as may be determined by the State Commission

Provided further that such surcharge shall be utilized to meet the requirements of current
level of cross-subsidy within the area of supply of the distribution licensee

9.11.2 The surcharge shall be the difference between the tariff applicable to the relevant
category of consumers and the cost of distribution licensee to supply electricity to the
consumers of the applicable class.
9.11.3 Para 8.5 of the Tariff Policy, stipulates as under,
Surcharge formula:
S=T- [C(1+L/100)+D]
Where
S is the surcharge
T is the Tariff payable by the relevant category of consumers;
C is the Weighted average cost of power purchase of top 5% at the margin
excluded liquid fuel based generation and renewable power
D is the Wheeling charge
L is the system Losses for the applicable voltage level, expressed as a Percentage
9.11.4 The Commission has considered average billing rate as submitted in the Petition, as it
represents the likely Average billing rate for various categories of consumers. For
implementing tariff philosophy in letter and spirit, a reasonable realisation rate from
consumer category and marginal cost of power purchase needs to be considered for

317



purpose of calculation of Cross subsidy surcharge(CSS). Average billing rate arrived by
the Commission based on direct sales considers impact of wheeling sales, as discussed
earlier in the Order and may not be appropriate to consider them for CSS calculation.
9.11.5 The Commission has calculated weigthage average marginal cost of top 5% of costlier
sources of power purchase, which is as under:

Table 237: Marginal Cost of Power Purchase
S. No Particulars
Units
Purchased
Total Cost Average Rate
MU Rs. Crore Rs./ kWh
1 NTPC-TNEB (JV) 1795 769 4.28
2 ST-CMS 1744 662 3.79
3 Total 3539 1430 4.04

Table 238: Average Billing Rate for HT Categories (in Rs kWh)
HT I A
Industrial
HT I B
Railway
Traction
Govt. and
Govt. aided
educational
Instns. Etc.
Private
Educational
Institution
Cinema
Theatre
and
Studio
Commercial
6.38 6.36 5.58 7.09 7.41 7.59

Table 239: Cross Subsidy Surcharge for HT Categories approved by the Commission (in Rs Kwh)
Sl.No
Injection
Voltage
Drawal
Voltage
Total Loss
(%)
Marginal
Cost of
Power
Purchase
Wheeling
Charge
Weighted
Average Power
Purchase Cost
1 22 kV/ 11 kV 22 kV / 11 kV 10.00% 404 23.27 472
2 33 kV 22 kV / 11 kV 7.25% 404 23.27 459
3 110 kV 22 kV / 11 kv 6.25% 404 23.27 454
4 110 kV 33 kV 3.50% 404 23.27 442
5 110 kV 110 kV 2.50% 404 23.27 438
6 230 kV 22 kV / 11 kV 5.50% 404 23.27 451
7 230 kV 33 kV 2.75% 404 23.27 439
8 230 kV 110 kV 1.75% 404 23.27 434
9 230 kV 230 kV 1.00% 404 23.27 431




318



Sl.
No
Injection
Voltage
Drawal
Voltage
HT I A
Industr
ial
HT I B
Railway
Tractio
n
Govt. and
Govt.
aided
educationa
l Instns.
Etc.
Private
Educationa
l
Institution
Cinem
a
Theatr
e and
Studio
Commercia
l
1 22 kV/ 11 kV 22 kV / 11 kV 166 164 86 237 269 287
2 33 kV 22 kV / 11 kV 179 177 99 250 282 300
3 110 kV 22 kV / 11 kv 184 182 104 255 287 305
4 110 kV 33 kV 196 194 116 267 299 317
5 110 kV 110 kV 200 198 120 271 303 321
6 230 kV 22 kV / 11 kV 187 185 107 258 290 308
7 230 kV 33 kV 199 197 119 270 302 320
8 230 kV 110 kV 204 202 124 275 307 325
9 230 kV 230 kV 207 205 127 278 310 328



319



10 TARIFF SCHEDULE
TARIFF FOR HIGH TENSION SUPPLY CONSUMERS
10.1 General Provisions applicable for High Tension Supply
10.1.1 Categories of supply: The categories of supply are as specified in the Commissions
distribution code and supply code. The HT tariffs specified for different categories of
HT consumers are also applicable to the consumers who are supplied at EHT level in
accordance with TNERC Supply Code and TNERC Distribution Code.
10.1.2 Harmonics: As specified in the Supply Code, when the consumer fails to provide
adequate harmonic suppression equipment to avoid dumping of harmonics beyond the
limits as specified by CEA regulations into Licensees distribution system, he is liable to
pay compensation at 15% of the respective tariff. As and when the consumer brings
down the harmonics within the limit, compensation charges shall be withdrawn. The
measurement of harmonics shall be done by the Distribution Licensee using standard
meters/equipments in the presence of consumers or their representatives. This
compensation provision is applicable to HT-I & HT-III category of consumers. The
TANGEDCO shall give three months clear notice to all consumers under these categories
stating that they shall pay 15% compensation charges if the harmonics introduced by
their load is not within the limits set by CEA. The TANGEDCO shall implement the
compensation provision after the three months period if the measured harmonics is more
than the limits.
10.1.3 In case of supply under HT Tariff, except for HT tariff-III, supply used for creating
facilities for the compliance of Acts/Laws or for the purpose incidental to the main
purpose of the establishment of the consumer such as facilities extended to the
employees/students/patients as the case may be, within the premises of the consumer,
shall be considered to be for the bonafide purpose. However, if such facilities are
extended to the public, such facilities shall be metered by the licensee separately and
charged under appropriate LT tariff. Such metered consumption shall be deducted from
the total consumption registered in the main meter of the HT/EHT supply for billing.
10.1.4 In the case of supply under HT Tariff IA, IIA, II B and III, at the option of the consumer,
the use of electricity for residential quarters, within the premises, shall be metered

320



separately by the licensee and charged under LT Tariff IC. Such metered consumption
shall be deducted from the total consumption registered in the main meter of the HT/EHT
supply for billing.
10.1.5 In the case of HT supply under IA, IIA, IIB, III, the use of electricity for the construction
purposes within the premises shall be metered separately by the licensee and charged
under LT Tariff VI. Such metered consumption shall be deducted from the total
consumption registered in the main meter of the HT/EHT supply for billing.
10.1.6 Low Power Factor Surcharge: In respect of High Tension service connections the
average power factor of the consumers installation shall not be less than 0.90. Where the
average power factor of High Tension service connection is less than the stipulated limit
of 0.90 the following compensation charges will be levied.

Particulars Dispensation for Power Factor Surcharge
Below 0.90 and up to 0.85
One per cent of the current consumption charges
for every reduction of 0.01 in power factor from
0.90
Below 0.85 to 0.75
One and half per cent of the current consumption
charges for every reduction of 0.01 in power
factor from 0.90
Below 0.75
Two per cent of the current consumption charges
for every reduction of 0.01 in power factor from
0.90

10.1.7 Billable Demand: In case of HT Consumers, maximum Demand Charges for any month
will be levied on the kVA demand actually recorded in that month or 90% of the
sanctioned demand which ever is higher.
Provided, that whenever the restriction and control measures are in force, the billable demand in
case of two part tariff for any month will be the actual recorded maximum demand or 90% of
demand quota, as fixed from time to time through restriction and control measures, whichever is
higher.

321





10.2 High Tension Tariff I A:
Tariff category
Tariff
Demand Charge
in Rs/KVA/ month
Energy charge
in Paise per kWh (Unit)
High Tension Tariff I A
300 550

10.2.1 This Tariff is applicable to all manufacturing and industrial establishments and registered
factories including Tea Estates, Textiles, Fertilizers, Salem Steel Plant, Heavy Water
Plant, Chemical plant, common effluent treatment plant, Cold storage units, Industrial
estates water works, Water Supply Works by new Tirupur Area Development
Corporation.
10.2.2 Information Technology services as defined in the ICT Policy 2008 of Government of
Tamil Nadu.
10.2.3 The definition is reproduced below:
IT services are broadly defined as systems integration, processing services,
information services outsourcing, packaged software support and installation,
hardware support and installation.
10.2.4 Information Technology Services includes:
i. Systems integration includes :
a) Network Management Services
b) Applications Integration
ii. Processing services includes:
a) Outsourced Services in Banking, HR, finance, Technology and other areas
b) Outsourced Bank office support or Business transformation and Process
Consulting Services.
iii. Information Services Outsourcing includes:

322



a) Outsourced Global Information Support Services
b) Knowledge Process Outsourcing
c) Outsourced Global Contact Centre Operations
d) Outsourced Process Consulting Services.
iv. Packaged Software Support and Installation includes:
a) Software Design and Development, Support and Maintenance
b) Application installation, support and maintenance
c) Application testing.
v. Hardware Support and Installation includes:
a) Technical and network operations support
b) Hardware installation, administration and management
c) Hardware infrastructure maintenance and support
10.2.5 The HT Industrial consumers (HT IA) shall be billed at 20% extra on the energy charges
for the energy recorded during peak hours. The duration of peak hours shall be 6.00 A.M
to 9.00 A.M and 6.00 P.M to 9.00 P.M.
10.2.6 The HT Industrial Consumers (HT I A) shall be allowed a reduction of 5% on the energy
charges for the consumption during 10.00 P.M to 5.00 A.M as an incentive for night
consumption.
10.2.7 High Tension Industries under Tariff I-A having arc, induction furnaces or steel rolling
process the integration period for arriving at the maximum demand in a month will be
fifteen minutes.
10.3 High Tension Tariff I B:
Tariff category
Tariff
Demand Charge
in Rs/KVA/ month
Energy charge
in Paise per kWh (Unit)
High Tension
Tariff I B
250 550
10.3.1 This tariff is applicable to Railway traction.


323




10.4 High Tension Tariff II-A
Tariff category
Tariff
Demand Charge
in Rs/KVA/ month
Energy charge
in Paise per kWh (Unit)
High Tension
Tariff II A
300 450
10.4.1 This tariff is applicable for the following services under the control of Central/State
Governments /local bodies/TWAD Board/CMWSSB:
1. Educational institutions including government aided educational institutions and
Hostels run by such educational institutions, Hospitals, Veterinary Hospitals, Leprosy
Sub-Centres, Primary Health Centres and Health Sub-Centres, Orphanages, Public
Libraries, Public Water works and sewerage works, Public Lighting, Residential
colonies and Housing complexes, Senior citizens communities, Electric crematorium,
Research Laboratories and institutions, Ministry of Defence and Avadi CRPF
establishment, Dairy units , Hospitals and Rehabilitation centres run by charitable
trusts which offers totally free treatment for all categories of patients on par with
government hospitals, Desalination plants and Art Galleries.
2. Desalination plant at Kudankulam nuclear power plant and Minjur Desalination plant
of Chennai water Desalination Ltd.
3. Single point supply to Cooprative group housing society as specified in The
Electricity Eighth Order 2005.
4. Actual places of public worship.
10.5 High Tension Tariff II B
Tariff category
Tariff
Demand Charge in
Rs/KVA/ month
Energy charge in Paise
per kWh (Unit)
High Tension
Tariff II B
300 550

324



10.5.1 The tariff is applicable to Private educational institutions and hostels run by them.
10.6 High Tension Tariff III
Tariff category
Tariff
Demand Charge
in Rs/KVA/ month
Energy charge
in Paise per kWh (Unit)
High Tension
Tariff III
300 700

10.6.1 All Commercial Establishments and other categories of consumers not covered under
High Tension Tariff IA, IB IIA, IIB and IV.
10.6.2 Private Communication Providers, Cinema Studios and Cinema Theatres.
10.7 High Tension Tariff IV
Tariff
category
Approved Tariff rate Subsidy for
Energy
Charges
in Paise per
kWh
Tariff rate payable by
Consumer
Demand
Charge
in Rs/KVA/
month
Energy
charge
in Paise
per kWh
Demand
Charge
in Rs/KVA/
month
Energy
charge
in Paise
per kWh
High Tension
Tariff IV
Nil 350 350 Nil Nil
10.7.1 This tariff is applicable to the Lift Irrigation Societies for Agriculture registered under
Co-operative Societies or under any other Act.
10.8 High Tension Tariff V
Tariff category
Tariff
Demand Charge in
Rs/KVA/ month
Energy charge in Paise
per kWh (Unit)
High Tension
Tariff V
300 950
10.8.1 Temporary supply for construction and other purposes.


325



TARIFF FOR LOW TENSION SUPPLY CONSUMERS
10.9 General Provisions applicable for Low Tension Supply
10.9.1 All consumers under this LT category except under LT tariff IB and IV shall have ISI
marked motor and motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked) Non compliance shall invite compensation charges
as specified in TNERC Supply Code.
10.9.2 In case of LT Tariff III-B and LT Tariff V, all services with a connected load of 18.6 kW
(25 HP) and above should maintain a power factor of not less than 0.85. Where the
average power factor of Low Tension Service connection is less than the stipulated limit
of 0.85 the following compensation charges will be levied.
Power Factor Dispensation for Power Factor Surcharge
Below 0.85 and upto 0.75 One per cent of the current consumption charges for every
reduction of 0.01 in power factor from 0.85.
Below 0.75 One and half per cent of the current consumption charges
for every reduction of 0.01 in power factor from 0.85

10.9.3 Consequent to the abolition of monthly minimum charges, in the event of disconnection
of services, the consumers shall be liable to pay the fixed charges applicable for the
respective category during the disconnection period.
10.9.4 Incase of LT Tariff IIB 1, II B2, IIC, IIIA 1, IIIA2, IIIB and V, the fixed charges shall be
calculated based on the contracted demand.
10.10 Low Tension Tariff I-A:



Tariff

Consumption slabs
Range in kWh(units)
and billing period
(one or two months)
Approved Tariff
rate
Subsidy
for
Energy
Charges
in paise /
kWh
Tariff rate payable
by consumer
Fixed
charges
(Rupees
per
month)
Energy
charges
in paise
/ kWh
Fixed
charges
(Rupees
per
month)
Energy
Charges
in paise /
kWh



Low
For consumers who consume upto 50 units per month or 100 units for two months
From 0 to 50 units per
month (or) 0 to 100
units for two months

10

260

150 10

110

326






Tariff

Consumption slabs
Range in kWh(units)
and billing period
(one or two months)
Approved Tariff
rate
Subsidy
for
Energy
Charges
in paise /
kWh
Tariff rate payable
by consumer
Fixed
charges
(Rupees
per
month)
Energy
charges
in paise
/ kWh
Fixed
charges
(Rupees
per
month)
Energy
Charges
in paise /
kWh
Tension
Tariff I-
A
For consumers who consume from 51 units to 100 units per month (or) 101 to 200
units per month
From 0 to 100 units per
month (or) 0 to 200
units for two months

10

280

100 10

180
For consumers who consume from 101 units to 250 units per month (or) 201 units to
500 units for two months
From 0 to 100 units per
month (or) 0 to 200
units for two months
15
300 Nil
15
300
From 101 to 250 units
per month (or) 201 to
500 units for two
months
400 50 350
For consumers who consume 251 units and above per month (or) 501 units and above
for two months
From 0 to 100 units per
month (or) 0 to 200
units for two months
20
300 Nil
20
300
From 101 to 250 units
per month (or) 201 to
500 units for two
months
400 Nil 400
From 251units and
above per month (or)
501 units and above for
two months
575 Nil 575

10.10.1 This tariff is applicable to the following:
(1) Domestic purposes of lights, fans, Air conditioners, including radio/TV and all other
home appliances and watering for gardening including growing of trees in and around
residential houses/buildings.

327



(2) Handlooms in residences of handloom weavers (regardless of the fact whether outside
labour is employed or not) and to handlooms in sheds erected where energy is availed of
only for lighting and fans.
(3) Public conveniences and Integrated woman sanitary Complexes.
(4) Community Nutrition Centres, Anganwadi Centres, Nutritious Meal Centres and school
buildings associated with the Government welfare scheme.
(5) Old Age Homes, Leprosy Centres run by Charitable Institutions rendering totally free
services
(6) Consulting rooms of size limited to 200 square feet of any professionals attached to the
residence of such professionals.
(7) In respect of multi tenements/residential complexes supply used for common lighting,
water supply, lift alone may be given separate connection and charged under this tariff.
(8) In respect of multi-storied buildings/residential complexes having both domestic and
commercial utilities, common facilities such as common lighting, common water supply,
and lift will be charged under this tariff only if the commercial built up area does not
exceed 25% of the total built up area
(9) In multi tenements residential building/Group Houses the additional service connections
requested by the owners/tenants shall be given without collecting development charges
and service connection charges. All other conditions applicable for giving such multiple
service connections are applicable except that more than one service connection are
permitted in the same door number.
(10) Electric crematorium by local bodies.





328



10.11 Low Tension Tariff I-B:
Tariff Description
Approved Tariff Rate
Subsidy
for Fixed
Charges/
Energy
Charge
Tariff Rate payable by
Consumer
Energy
charges in
Paise /
kWh
Fixed
charges
(Rupees /
Month)
Fixed
Charges
(Rupees /
Month)
Energy
charges in
Paise /
kWh
Low
Tension
Tariff I-
B
Till
installation of
Energy Meter
Nil 60
60
Rupees
/service/
Month
Nil Nil
On
Installation of
Energy Meter
250 Nil
250
Paise/kWh
Nil Nil

10.11.1 This tariff is applicable to huts in Village Panchayats and special grade
panchayats, houses constructed under Jawahar Velai Vaiipu Thittam, TAHDCO
Kamarajar Adi Dravidar housing schemes, huts in Nilgiris District and hut with concrete
wall in the schemes of state and central Governments. This tariff is applicable subject to
following conditions:
(1) Hut means a living place not exceeding 250 square feet area with mud wall and
the thatched roof / tiles / asbestos / metal sheets like corrugated G.I. sheets for
roofing/ concrete Roof and concrete wall with specification of square feet as
approved in the schemes of State/ Central Government.
(2) Only one light not exceeding 40 watts shall be permitted per hut.
(3) As and when the government provides other appliances such as Colour TV, fan,
Mixie, Grinder and Laptops to these hut dwellers, the usage of appropriate
additional load may be permitted.
10.11.2 Whenever the norms prescribed in (1) to (3) above is violated, the service
category shall be immediately brought under Low Tension Tariff I-A and billed
accordingly



329




10.12 Low Tension Tariff I-C:
Tariff
Tariff
Energy charges
in paise / kWh
Fixed charges (Rupees /
Month)
Low Tension Tariff I-C 400 50

10.12.1 This tariff is applicable to LT bulk supply for railway colonies, plantation worker
colonies, defence colonies, Police Quarters, Residential quarters of Koodankulum
Nuclear power project. This tariff is also applicable for the HT/EHT consumers who opt
for extending supply under this category for their residential colonies / quarters.
10.13 Low Tension Tariff II-A:
Tariff
Energy charges
in paise / kWh
Fixed charges
(Rupees / Month)
Low Tension Tariff II-A 550 Nil

10.13.1 This tariff is applicable to Public Lighting, Public Water Supply and Public
Sewerage System belonging to Government/local bodies /TWAD Board/MMSSB,
Railway level crossings, private agriculture wells/private wells hired by
Government/CMWSSB/TWAD Board/Local bodies to draw water for public distribution,
Public Water Supply by New Tirupur Area Development Corporation, Public Water
Supply in plantations, separate service connections for streetlights for SIDCO and other
Industries Department. Lighting arrangements in the Rockfort temple area, its environs
and for the roads and pathways leading to temple at Tirchy.
10.14 Low Tension Tariff II-B (1)
Tariff
Tariff
Energy charges
in paise / kWhr
Fixed charges
(in Rupees per kW per
month)

330



Low Tension Tariff II-B (1)
500 50

10.14.1 This tariff is applicable to the following:

10.14.2 Government and Government aided Educational Institutions, Hostels run by such
Educational Institutions, Hostels run by Adi-Dravidar and Tribal Welfare, Backward
Class Welfare Departments and other Government agencies, Government Youth Hostels,
Scouts camps, Government Hospitals, Hospitals under the Control of local bodies,
Veterinary Hospitals, Leprosy Sub-Centers, Primary Health Centers and sub-centers,
Research Laboratories, Dispensaries, creches and recreation centers run by plantations,
Research Institutes, Orphanages, Public Libraries and Libraries run at free of cost by
trusts , Homes for Destitutes and Old people, Emergency accident Relief centers on
highway, Terminal cancer care centre giving free treatment, Hospitals and Rehabilitation
centres for mentally ill and blind, centres and dispensaries run by charitable trusts which
offers totally free treatment for all categories of patients on par with government
hospitals, Free Student Hostel, Hospital at Tribal areas, Institutes run for /by the
physically challenged at free of cost, Government Art Galleries and Private Art Galleries
and museum on service motives, Government Elephant Health camp, State Legal Udhavi
Maiyam.
10.15 Low Tension Tariff II-B (2)


Tariff
Tariff
Energy charges
in paise / kWhr
Fixed charges
(in Rupees per kW per
month)
Low Tension Tariff II-B (2)
650 50

10.15.1 This tariff is applicable to Private educational institutions and hostels run by
them.



331



10.16 Low Tension Tariff II-C:
Tariff
Consumption
slabs Range
in kWh and
billing period
Approved Tariff Rate
Subsidy
for
Energy
Charges
in Paise
per kWh
Tariff Rate Payable by
the Consumer
Fixed
Charges
(Rupees
per kW
per
month)
Energy
Charges in
Paise per
kWh
Fixed
Charges
(Rupees per
kW per
month)
Energy
Charges
in Paise
per kWh
Low
Tension
Tariff
II-C
0 to 60 units
per month or 0
to 120 units
bimonthly
50

500 250
50
250
Above 60 units
per month or
above 120
units
bimonthly
500
Nil 500
10.16.1 This tariff is applicable to actual places of public worship.
10.16.2 The existing concessions to the actual places of worship as already notified by
GoTN having annual income less than Rs. 1000 shall be continued under the same terms
and conditions, until further Order of the Commission
10.17 Low Tension Tariff III-A (1):
Tariff
Consumption slabs Range in
kWh and billing period
Tariff
Fixed Charges
(Rupees per kW per
month)
Energy Charges
in Paise per kWh
Low
Tension
0 to 250 units per month or
0 to 500 units bimonthly
350

332



Tariff
Consumption slabs Range in
kWh and billing period
Tariff
Fixed Charges
(Rupees per kW per
month)
Energy Charges
in Paise per kWh
Tariff
III-A(1)
From 251 and above units per
month or 501 units and above
bimonthly
15

400
10.17.1 The connected load for supply under this tariff category shall not exceed 10 HP.
10.17.2 This tariff is applicable to Cottage and tiny industries, micro enterprises engaged
in the manufacture or production of goods pertaining to any industries specified in the
first schedule to Industries (Development and Regulations) Act 1951 (Central Act 65 of
1951).
10.17.3 The intending consumers applying for service connection under LT Tariff III A
(1) claiming to have established the micro enterprise engaged in the manufacture or
production of goods shall produce the cottage industries certificates from the industrial
department /acknowledgement issued by the District Industries Center under the Micro
Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006 ) as proof for
having filed Entrepreneurs Memorandum for setting up of Micro Enterprises for
manufacture or production of goods with District Industries Center under whose
jurisdiction the Enterprise is located.

10.17.4 The existing consumers who are classified under LT Tariff III A (1) based on the
SSI / Tiny Industries Certificate may be continued to be charged under the same tariff
10.17.5 This tariff is applicable to Small gem cutting units, Waste land development,
laundry works, Common effluent treatment plants.


333



10.17.6 This tariff is also applicable to Coffee grinding, Ice factory, Vehicle Body
building units, saw mills, rice mills, flour Mills, battery charging units.
10.17.7 This tariff is also applicable for sericulture, floriculture, horticulture, mushroom
cultivation, cattle farming, poultry and bird farming, dairy units and fish/prawn culture
who have not been covered under LT Tariff IV and which are run on commercial lines.

10.18 Low Tension Tariff III-A (2):
Tariff
Consumption
slabs Range
in kWh and
billing period
Approved Tariff Rate
Subsidy
for
Energy
Charges
in Paise
per kWh
Tariff Rate payable by
consumer
Fixed
Charges
(Rupees
per kW
per
month)
Energy
Charges in
Paise per
kWh
Fixed
Charges
(Rupees
per kW
per
month)
Energy
Charges in
Paise per
kWh
Low
Tension
Tariff
III-A (2)
0 to 250 units
per month or
0 to 500 units
bimonthly
50
450 450
50
Nil
From 251 and
above units per
month or
501 units and
above
bimonthly
500 100 400

10.18.1 The connected load shall not exceed 10 HP under this category.
10.18.2 The tariff is applicable to Power looms, Braided Cords Manufacturers, related
ancillary tiny industries engaged in warping, twisting, and winding.




334



10.19 Low Tension Tariff III-B:
Tariff
Fixed Charges
(Rupees per kW per month)
Energy Charges
in Paise per kWh
Low Tension Tariff III-B 30 550
10.19.1 This tariff is applicable to all industries not covered under LT Tariff III A (1) and
III-A (2). All industries covered under LT Tariff III A (1) and III A (2) shall also fall
under this tariff category if the connected load of such industries exceeds 10 HP.
10.19.2 This tariff is also applicable to Welding sets irrespective of its capacity.
10.19.3 Information Technology services as defined in the ICT Policy 2008 of
Government of Tamil Nadu and amended from time to time. The definition is reproduced
below:
IT services are broadly defined as systems integration, processing services,
information services outsourcing, packaged software support and installation,
hardware support and installation.
10.19.4 Information Technology Services includes:
(i) Systems integration includes :
a) Network Management Services
b) Applications Integration
(ii) Processing services includes:
a) Outsourced Services in Banking, HR, finance, Technology and other areas
b) Outsourced Bank office support or Business transformation and Process Consulting
Services.
(iii) Information Services Outsourcing includes:
a) Outsourced Global Information Support Services
b) Knowledge Process Outsourcing
c) Outsourced Global Contact Centre Operations
d) Outsourced Process Consulting Services.
(iv) Packaged Software Support and Installation includes:
a) Software Design and Development, Support and Maintenance

335



b) Application installation, support and maintenance
c) Application testing.
(v) Hardware Support and Installation includes:
a) Technical and network operations support
b) Hardware installation, administration and management
c) Hardware infrastructure maintenance and support.
10.19.5 Supply to welding sets shall be charged 15% extra.
10.19.6 The intending consumers applying for service connection under LT Tariff III B
claiming to have established the industries engaged in the manufacture or production of
goods shall produce certificate from the District Industries centre.
10.20 Low Tension Tariff IV:
Tariff Description
Approved Tariff rate
Subsidy for
Fixed
Charges /
Energy
Charge
Tariff rate payable by
consumer
Energy
charges in
Paise /
kWh
Fixed
charges
(Rupees
per HP per
annum)
Fixed
Charges
(Rupees
per HP
per
annum
Energy
charges in
Paise /
kWh
Low
Tension
Tariff IV
Till
installation of
Energy Meter
Nil 1750
1750
Rupees per
HP per
annum
Nil Nil
On
Installation of
Energy Meter
130 Nil
130
paise/kWh
Nil
Nil

10.20.1 This tariff is applicable to all agricultural and allied activities such as cultivation
of food crops, vegetables, seeds, trees and other plants. Sericulture, floriculture,
horticulture, mushroom cultivation, cattle farming, poultry and other bird farming,

336



fish/prawn culture carried out as allied activities of agriculture shall be construed as
agricultural activities.
10.20.2 The services under this tariff shall be permitted to have lighting loads up to 50
watts per 1000 watts of power connected subject to a maximum of 150 watts inclusive of
wattage of pilot lamps.
10.20.3 This tariff is applicable irrespective of owner ship of land if the usage of
electricity is for agriculture.
10.20.4 Agriculturists shall be permitted to use the water pumped from the well and
stored in overhead tanks for bonafide domestic purposes in the farmhouse. The
farmhouse shall be in close proximity from the well.

10.20.5 Supply for other purpose exceeding the limit permitted for the Pump sets and
lighting purpose shall be provided only by separate service connections under appropriate
LT Tariff. Service connections for water pumping for non agricultural purpose under
appropriate tariff is permitted in the same well.

10.20.6 This Tariff is applicable to pump sets of Tamil Nadu Agriculture university and
Research centres, Government Seed Farms, pump sets of Tamil Nadu Forest department,
Pump sets of Government coconut nurseries, Pump sets of Government oil seed farms,
Pumping and purifying of drainage water for the purpose of agriculture use.

10.20.7 All the new services under this category shall have ISI marked motors and power
factor compensation capacitors to qualify for the supply. All the existing services should
be provided with power factor compensation capacitors within one year. Non-
compliance to provide the capacitors shall invite compensation charges as per the Tamil
Nadu Electricity Regulatory Commission Regulations.


337



10.21 Low Tension Tariff V:
Tariff
Fixed Charges
(Rupees per kW per month)
Energy Charges
in Paise per kWh
Low Tension Tariff V
For consumer with
consumption 50 units
per month or 100 units
bimonthly
60 430
For consumer with
consumption above 50
units per month or above
100 units bimonthly
60 700

10.21.1 This tariff is applicable to All Commercial establishments, private communication
providers, cinema studios, cinema theatres and consumers not categorized under LT IA,
IB, IC, IIA, IIB (1), II B (2), IIC, IIIA (I), III A (2), IIIB, and IV.
10.21.2 This tariff is also applicable for LT supply for construction activities of residential
house/building till the completion of construction activities.
10.21.3 In respect of multi tenements/multistoried buildings/residential complexes where
the number of flats/Tenements utilized for commercial purposes exceeds 25% of the total
built up area, the LT services relating to common utilities such as common lighting, water
supply, lift shall be charged under this tariff.
10.21.4 In respect of residential complexes used for domestic, the common facilities such
as Gym, swimming pool, recreation clubs, indoor stadiums and grounds, indoor and
community halls, amphi theatres, shops etc will be charged under this tariff.






338



10.22 Low Tension Tariff VI:



Tariff
Description
Energy charges
in paise / kWh
Minimum
(in Rupees)

Low
Tension
Tariff VI
Supply to temporary
activities
1050
100 per kW or part
of connected load
thereof per day
Lavish illumination
1050
Nil

10.22.1 This tariff is applicable for power supply for temporary activities such as
construction of commercial complexes/ Residential buildings/ Complexes of more than
12 dwelling units. The temporary supply shall be converted into respective regular
category after completion
10.22.2 This tariff is also applicable for lavish illumination to weddings, garden parties
and other private functions, where the illumination is obtained through bulbs fastened in
outer surfaces of walls of buildings on trees and poles inside the compound and in
pandals, etc., outside the main building. All other cases of illumination, obtained through
bulbs intended on outer surface of walls of buildings on trees and poles inside the
compound and in pandals etc., outside the main building shall be charged as for
Temporary Supply.
Applicability of the Tariff Schedule

10.22.3 The above tariff schedule shall be read with the General Terms and Conditions of
Supply Code and Distribution code specified by the Tamil Nadu Electricity Regulatory
Commission.
10.22.4 The present tariff order supersedes all the previous specific orders issued by the
Commission on categorization of certain consumers.


339






340



11 SUMMARY OF DIRECTIVES
11.1 The Commission directs the TANGEDCO to properly monitor the on-going projects so
that they are commissioned without further delay. The TANGEDCO should also ensure
that the TANTRANSCO completes all the associated transmission system for evacuation
of power from the generating stations which are getting commissioned during the year
2012-13 so that power generated from the generating stations are transmitted up to the
Load Centers without any bottle necks. The TANGEDCO should ensure that the power
which is available at the sub-stations is taken up to the consumption points by way of
appropriate distribution system. All these arrangements will have to be carried out
through a well structured business plan and individual schemes matching with the
business plan. All such plans and schemes shall be submitted in accordance with the
Terms and Conditions of Tariff Regulations 2005, MYT Tariff Regulations as well as
Licensing Conditions to the Commission.
11.2 The Commission directs TANGEDCO to complete the exercise being done by
TANGEDCO for accurate measurement of T&D Loss and unmetered agricultural
consumption before October 31, 2012 and submit the findings to the Commission before
December 1, 2012.
11.3 The Commission directs TANGEDCO to comply with various provision of Energy
Conservation Act 2001 pertaining to energy audit.
11.4 The Commission directs TANGEDCO to file separate petition for the approval of capital
cost and tariff determination of new power plants.
11.5 The TANGEDCO is directed to submit data on ToD consumption along with the
subsequent Tariff Application for all consumers where ToD meters have been installed.
11.6 The Commission directs TANGEDCO to maintain quality of supply as specified in Tamil
Nadu Electricity Distribution Standards of Performance Regulations dated 21-07-2004.
11.7 The Commission directs TANGEDCO to submit a time bound program for 100%
metering at feeder level and Distribution Transformers.
11.8 The Commission directs TANGEDCO to submit the detailed segregation of wheeled
energy included in power purchase and sales in next Tariff determination process.

341



11.9 The Commission directs TANGEDCO to project the hydro generation accurately and
submit the same within 3 months of the issuance of this Order.
11.10 The Commission directed TANGEDCO to follow the Government of India (GoI)
guidelines under Section-63 for power purchase for less than 1 year, as and when
finalised.
11.11 The Commission directs TANGEDCO to take prior approval before purchasing the
energy from Traders higher than the quantum and rate specified by the Commission in
this Tariff Order.
11.12 The Commission directs TANGEDCO to file their Tariff Petition on a timely basis every
year, as per the TNERC Tariff Regulations.
11.13 The Commission directs TANGEDCO to submit separate Petition for approval of
additional capitalisation along with all details within three months of the date of issuance
of this Order.
11.14 The Commission directs TANGEDCO that the amount approved for R&M expenses
should not be diverted for any other purpose.
11.15 The Commission directs TANGEDCO to submit separate Petition for approval of Capital
Cost and determination of Tariff for New Hydro Generating Stations before next Tariff
determination exercise.
11.16 The Commission directs TANGEDCO to introduce KVAH billing for LT and HT
consumers, as recommended by Forum of Regulators.
11.17 The Commission directs TANGEDCO to provide meters for all the new hut connections.
Also, TANGEDCO should submit a phase wise plan to convert existing un-metered hut
connections to metered connections within 90 days of the issuance of this Order.
11.18 TANGEDCO shall file its Petition for additional capitalisation of existing generating
stations submitted in this Tariff Petition, for Commissions approval, in accordance with
Regulation 19 of TNERC Tariff Regulations, 2005, within 90 days of issuance of this
Order.

342



11.19 TANGEDCO should not consider GPF as a source of fund and treat it separately from
revenue account and same will be revisited by the Commission in next Tariff Order.
11.20 TANGEDCO should pay transmission charges determined by the Commission to
TANTRANSCO in twelve equal monthly instalments during FY 2012-13.
11.21 The Commission directs TANGEDCO to submit its preparedness, implementation plan
and sample FPCA calculations for the last quarter, for which data is available, to the
Commission, within 30 days of issuance of this Order.





Sd/- Sd/-
(S. Nagalsamy) (K.Venugopal)
Member Member
ANNEXURE I

MEMBERS OF THE 23
RD
STATE ADVISORY COMMITTEE MEETING HELD ON
27
TH
JANUARY 2012
1. Thiru. K. Venugopal, Member, TNERC Ex-officio Member, SAC
2. Thiru. S. Nagalsamy Member, TNERC Ex-officio Member, SAC
3. Thiru. Ramesh Kumar Khanna, IAS., Principal Secretary to Government, Energy
Department, Government of Tamil Nadu Member, SAC
4. Tmt. M.P. Nirmala, IAS, Secretary, Co-operation, Food and Consumer Protection
Department, Government of Tamil Nadu Ex-officio Member, SAC
5. Thiru. Rajeev Ranjan, I.A.S.,Chairman & Managing Director, Tamil Nadu Electricity
Board Limited , Tamil Nadu Generation and Distribution Corporation Limited &
Chairman, TANTRANSCO Member, SAC
6. Thiru. K.R. Thangaraj, President, TANSTIA - Member SAC
7. Thiru. N.K. Ranganath, Chairman, CII, Tamil Nadu - Member SAC
8. Thiru. M.C. Murali, Chief Electrical Engineer, Southern Railways Member SAC
9. Thiru. K. Venkatesan, I.A.S., (Retd.) - Member SAC
10. Thiru. G.S. Rajamani - Member SAC
11. Thiru. T. Kannan, Managing Director, Thiagaraja Mills Limited, - Member SAC
12. Thiru. K. Alagu, Vice President, Tamil Nadu Chamber of Commerce and Industry.-
Member SAC
13. Thiru. K. Kasturirangaian, Chairman, Indian Wind Power Association, - Member SAC
14. Thiru. K. Kathirmathiyon, Secretary, Coimbatore Consumer Cause, - Member SAC
15. Thiru. R. Desikan, Trustee, Consumer Association of India, - Member SAC
16. Dr. S. Usa Member, Professor and Head, Department of Electrical and Electronics
Engineering, Anna University, Chennai - Member SAC






ANNEXURE II
LIST OF STAKEHOLDERS WHO HAVE SUBMITTED WRITTEN SUGGESTIONS
AND OBJECTIONS

SL NO NAME & ADDRESS
1 Thiru K Purushothaman, Regional Director, TamilNadu & Kerala NASSCOM,
National Association of Software and Services Companies, G 1, Ameen Manor,
Ground Floor, 138, Nungambakkam High Road, Nungambakkam, Chennai 34
2 Thiru J Subramani, Nathan Anbupriyan, Social Worker, 1/124, Sivan Koil Street
Gnayaru, Chennai 67
3 Thiru S Mookand, Superintending Engineer ( Retd ), Tamil Nadu Electricity
Board, 85, Elim Nagar, Penungudi, Chennai 96
4 Thiru B S Venkataraman ; E Mail : nlvarunachala@rediffmail.com
5 Thiru K Narayanan, No 7/3, Thiagarayya Pillai Street, Ezhukineru, Chennai 1
6 Arimalam Union Consumers Corps, 4, Pasumadathar Veethi, Arimalam 622201
7 All District Ice Producers Welfare Association. New No 103, Kumbalamman Koil
Street, Tondiarpet, Chennai 81
8 Thiru E Ramakrishnan, Madurai ; E Mail : hitechrke@gmail.com
9 Thiru G T Natarajan ; E Mail : g.t.nboss@gmail.com
10 Thiru R Kumaran, 28, Kulakkarai Street, Kilpennathur Post, Tiruvannamalai
District
11 Thiru R Duraisamy, Vice President, All India Induction Furnaces Association. 77-
B, Old Edappady Road, Sankari Durg, Salem 637301
12 Thiru R Srinivasan, 14 B, 3
rd
Main Road, Srinivasapuram, Koratur, Chennai 76
13 Thiru T Krishnan, No 24/21, Parthasarathy Street, Kulasekarapuram, Chinmaya
Nagar, Chennai 92
Thiru M Karthikeyan, 4/5, Vinayagam Street, Venkatesh Nagar, Virugambakkam,
Chennai 92
Thiru M K Ramaroorthy, 65 A, Venkates Nagar, 2
nd
Street, Saligramam, Chennai
92
Thiru M Daivasighamani, No 59, 2
nd
Street, Venkatesa Nagar, Virugambakkam,
Chennai 92
Thiru M R Saravanan, No 30, Bhaktavatchalam Street, Srivenkatesa Nagar,
Virugambakkam, Chennai 92
Thiru M R Vasanta, 65 A, Venkates Nagar, 2
nd
Street, Saligramam, Chennai 92
Thiru T Venkat , No 45, Venkates Nagar, 2
nd
Street, Saligramam, Chennai 92
14 Thiru I Ponniah, Project Director, NHAI, IInd Floor, VSSA Commercial Complex,
9-11, Omalur Main Road, Near New Bus stand, Salem 636004
15 Shri Ram Chandra Mission, World Headquarters, Babuji Memorial Ashram, Shri
Ram Chandra Mission Road, Manapakkam, , Chennai 600125
16 Sevalaya, 63/32, I Main Road, Gandhi Nagar, Adayar, Chennai 20
E Mail : sevalayamurali@gmail.com
17 Thiru K Nagamanickam, Visaitarikku Narpattu and Nool Murukketravor Sangham,
1/137, Senkattu Street. T Jedarpalayam Anjal, Rasi puram Village, Namakkal
SL NO NAME & ADDRESS

18 Thoothukudi District Tiny and Small Scale Industries Association. 4/158, Ram
Nagar, Ettayapuram Road, Thoothukudi 628002
19 S.Paparpatti Village Council, Attayampatti Township, Salem 637501
20 M V R Infrastructure and Tollways Pvt Ltd, MVR Toll Plaza, Near Periyar
University, Kottagoundanpatty Village, Omalur Taluk, Salem 636011
21 Thiru J P Jeyasekaran, Dy Gen Manager Projects, Steel Authority of India Ltd,
Salem Plant, Salem 636013
22 S Duraraj, Sri Radha Krishna Rice Mill, Aatur Main Road, Gangavalli PO & Taluk,
Salem 636105
23 Thiru J P Peter, General Superintendent, , CMC Vellore ; E Mail :
gsoffice@cmcvellore.ac.in
24 Address not clear
25 Thiru A.R.Gopinath, 5, Hospital Street, Polur 606803
26 All District Ice Producers Welfare Association, New No 103, Kumbalamman Koil
Street, Tondiarpet, Chennai 81
27 Thiru K Azhagirinathan, Siru Visaitheri Urpathi Azhargal Pathukappu Sangham,
210, Kamarajar Nagar Colony, Salem 636014
28 Thiru S Sivaraman, No 1, First Floor, Parsh Gardens, Melur Road, Srirangam
620006
29 Anti Bribe Movement, No 53, IInd Cross Street, Bharathi Nagar, Ambattur,
Chennai 53
30 Thiru M Muthusamy, Gandhinagar, Attur Taluk, Salem District 636102
31 Thiru T K Sreedharan, 2/400, Ammans Nagar III, Idigarai Main Road N.G.G.O
Colony Post, Coimbatore 22
32 Thiru V Ganesh, CIT Nagar, Nandanam, Chennai 35 ; E Mail :
ganesh.v@hpdc.co.in
33 Thiru M.K.Parthasarathy, Consumer protection forum ,Mylapore, Balam
Srinidhi, IOB Colony ( Residents) Welfare Association, Plot No 10/B3, II Main
Road, Camp Road, Selaiyer, Chennai 73
34 M/s Naagai Maavata Oivupetra Aluvalar Sangam, Neethimandra Valaagam,
Velaimpalayam, Nagapatinam 611 001
35 Thiru G Sreenivasan, D No 20/47, 2
ND
Avenue, Prithvipakkam, Ambattur, Chennai
53
36 Thiru A Sardar Mahaboob Jan, Retired Chief Engineer TNEB, 27/1, SPIC Nagar,
Velachery, Chennai 42
37 R. Kannan, Teacher, Govt. Higher Secondary school, Polambakkam,
Kancheepuram Dist 603 309
38 A. Mohammed Bilal, Secretary
Thenkasi Vattara Thirumana Mandapam Urimaiyalargal sangam, Thenkasi.
39 The Tamilnadu Roller Flour Mills Association, Shivalaya Building, A Block, Ist
Floor, 119, Ethiraj Salai, Chennai 8
40 K.P. Gurusamy, 39, Naatamai street, Mavakkal, Kadainallur 627 751, Tirunelveli
dist.
S. Chellakumar, 36, Kaaliamman Kovil, Kizhamel Street, Mavadikal Kadainallur.
SL NO NAME & ADDRESS
V.Murugan, 42/107, Railway peter Road, Krishnapuram, Kadainallur. Thenkasi
Taluk.
M. Mathavi, 17/9, Sakthi Vinayagar Kovil Street, M.K. puram Kodayanallur.
M. Frandis, 69/6, Colony Street
Kanmaniyapuram, Kadayanallur 627751, Thenkasi
A.Prasanna, 78/125, Nathavaar Pallivasal Street, Pettai, Kadayanallur.
R. Karthikeyan, 70, Kacheri Street, Sankaran kovil.
A. Arrokyaraj, 227, Main Road, Seithur 626 121. Rajapalayam (T.K.)
S. Mohhamad Jyanal, 59A/66, Malambamadai Road, Pettai, Kadayanallur.
M. Marisamy, 1/145, Pillaiyar Kovil street, Poganallur (PO), Kadayanallur,
Thenkasi (tk) 627 751
41 V.P. Vadivel Aachariyar
Chairman, Thirumana Mandapa Owners Association, 39 Pachayappa Mudali
street, Kumbakonnam 612 001
42 Thiru Bhanu Suresh Babu, Project Director, M/s CONCERN, No 18, Anbu Nagar,
1
st
Street, Sridevi Kupam Main Road, Valasaravakkam, Chennai 87
43 Thiru V Lakshmi Narayanasamy, Director, M/s Suguna Technologies, , No 768,
IDEA Building, Puliyakulam Road, Pappanaickenpalayam, Coimbatore 641037
44 Tmt Hemalatha Manohar, Dy Director, M/s Rasa ( Ramana Sunritya Aalaya), No
1/1, Abhiramapuram, 1
st
Street, Chennai 18
45 Thiru Samson Sundar, E Mail : j55sam@yahoo.in
46 Thiru R Vaidyanathan, Mavatta Toyirsangham Amaiyppalar, Manitha Urimaiygal
Kazhagam ( Sarvadesa Amaippu), Mavatta Nugarvor Pathukappu Maiyya
Talaimey Seyar kuzhu, Tiruvarur District, 5 B, Tirukulam Melkarai,
Tiruturaipoondi
47 Thiru Raja, Address not clear
48 Thiru A V Senthil, New No 25/B1, Venkataraman Street, T Nagar, Chennai 17
49 Thiru M Satish Kumar, 321/4, Gandhipuram, Pattiveeranpatti, Dindigul District
624211
50 Thiru C Yoganarayanamurthy, No 55, Brindavan Nagar, Valsaravakkam, Chennai
87
51 M/s Yusuffla Etheem Khana Almadrasathul Yusuffia, C 52, Thaika Street,
Thatchnllur PO., Tirunelveli 627358
52 Thiru M Babuji, Dy Chairman, Kamaraj Samukha Neethi Peravai, Chennai 94
53 Thiru E Manikkavelu, Gen Secy, Akhil India Viswakarma Peravai,11/6,
Bangaramman Street, Poonga Nagar, Chennai 3
54 Tmt V Selvambal
Mempuliyur, Mambakkam
Ulunthoorpetai , Villupuram district 606 107
55 Thiru S Cheirmaraj, President, The Sivakasi Master Printers Association, 425,
Kamarajar Road, Post Box No 287, Sivakasi, 626123
56 Tmt P Sundari, Tayakam, Kovilpalayam, Pollachi 642110
57 Thiru K C M Balasubramaniam, President, Tiruppur Consumer Voice, 18,
Appachinagar, 2
nd
Street, Tiruppur 641607
58 Thiru Bhuminathan, 1/69, Chithambaranathapuram.
SL NO NAME & ADDRESS
59 Thiru Ramasamy, Sri Kamakotinilayam, 86, Srikaivendur Street, Sasthiri Nagar,
Erode 638002
60 Thiru M S Vembu, 96/2, South West Boax Road, T Nagar, Chennai 17
61 Thiru A Sakthivel, President, Tirupur Exporters Association, 62, Appachi Nagar
Main Road,Post Box No 508, Kongu Nagar, Tirupur 641607
62 Thiru A Ramachari, 19, Ramakrishna Nagar extension, Valsaravakkam, Chennai
87
63 Thiru M Thirugnanam, Asst Supd of Post Offices, 1/11, Bye Pass Main Road,
Sundaraperumalkoil Post, Kumbakonam Taluk, Thanjavur District 614208
64 Thiru R Kaliamurthy, Secretary, Upayogippalar Pathukappu Mattrum Pothu Sevai
Sangham, 35/28,Western Street, Tirupananthal , Thiruvidailmaruthur Circle,
Tanjavur 612504
65 Chairman, Sidconagar Welfare Association, c3/298, 30
th
Street, Sidco Nagar,
Villivakkam, Chennai 49
66 Tmt S Vijayalaxmi, Arihant Flats, 1
st
Floor, Nandhi Loop Street, West CIT Nagar,
Chennai 35
67 Thiru M Shanmugham, 822, LIG I, T.N.H.B, Avadi, Chennai 54
68 Thiru K Subramanian, Old No 25, New No 43, Erikkarai Salai, West Mambalam,
Chennai 33
69 The President, Virudhunagar District Consumers Centre, 36/1, Railway Feeder
Road, Rajapalayam 626117
70 Thiru S Sreekar, Chairman, Thiruvalluvar Public Association, No C 16, S.S.
Temple land, Behind Right Street, Salavanpettai, Vellore 632001
71 M/s Shriplast, Sp 26, Ambattur Industrial Estate, Chennai 58 ; E Mail :
info@plastometal.co.in
72 Thiru A N Sujeesh, Proprietor, M/s Sri Hari Industries, 136/469, SICDO Industrial
Estate, Patravakkam, Ambattur ; E Mail : sriharichn@rediffmail.com
73 Thiru V.K.Jain, Instruments & Apparatus (P) Ltd, D 20, Ambattur Industrial Estate,
Chennai ; E Mail : vkanima@yahoo.com
74 Thiru S.P.Kasimeyyappan, M.D, M/s Tamilnad Tools (P) Ltd, 51 ( New No 74),
DISCO Industrial Estate, Chennai 98 ; E Mail : tamilnadtools@gmail.com
75 Thiru Thiagarajan, M/s Electro chem. Enterprises, SP5, Ambattur Industrial Estate,
Chennai 58
E Mail : electrochem2007@rediffmail.com
76 Thiru B Swaminathan, Director, Chennai Auto Forgings Pvt Ltd, SP 124, First
Main Road, Ambattur Industrial Estate, Chennai 58 ; E Mail :
chennaiautoforging@yahoo.co.in
77 Thiru M Deepak Ratan,Partner, M/s Nithya Industries, E Mail :
nithyaindustries@airtelmail.in
78 Thiru K Anand, M/s V K Industries, 198/2, Sidco Industrial Estate, Ambattur ; E
Mail : vkindustries@gmail.com
79 Thiru V Venkateswaran, M/s Keen Metal Forms, G 21, 2
nd
Main Road, A.I.E,
Chennai 58 ; E Mail : keenmetalforms@yahoo/co.in
80 M/s Swan Electric Engineering Co Pvt Ltd, No 134 ( N.P) Sidco Industrial Estate,
Ambattur, Chennai 98 ; E Mail : swelco@gmail.com
SL NO NAME & ADDRESS
81 M/s Metal Alloy Industries, 139, SIDCO Industrial Estate, Ambattur, Chennai 98 ;
E Mail : metalloyind@yahoo.co.in
82 The Managing Director, M/s Virgo Paints (P) Ltd, 234, SIDCO Industrial Estate,
Ambattur, Chennai 98 ; E Mail : mannaraj@virgopaints.com
83 Thiru M K Mukundan, M/s Technics Industries, SP 135, Ambattur Industrial
Estate, Ambattur, Chennai 58
84 Thiru Shankar, Managing Director, M/s Precision Controls, No 29, SIDCO
Industrial Estate, Ambattur, Chennai 98 ; E Mail : precons@airtelmail.in
85 Thiru Rajesh Kumar Jain, M/s Sunshine Plasmacrafts, 47, BO, SIDCO Industrial
Estate, Ambattur, Chennai 98. E Mail : sunshineplasmacraft@yahoo.com
86 Thiru R K Kutty, Vice President, M/s Premier Steel Complex Pvt Ltd, 1-A/3,
SIDCO Industrial Estate, Ambattur, Chennai 98
87 Thiru L Venugopal, Partner, Vaasan Engineering Works, SP 157/E, Industrial
Estate, Ambattur, Chennai 58 ; E Mail : vaasan_engg@airtelmail.in
88 M/s M Metaprint Industries, 82, SIDCO Industrial Estate, Ambattur, Chennai 98
89 Thiru T Raj Kumar, CEO, Sri Venkateswara Precision Components, J-3, Ambattur
Industrial Estate, Chennai 58
90 Thiru Girish Gupta, Director, M/s Adarsh Line Accessories Pvt Ltd, No 321,
SIDCO Industrial Estate, Ambattur, Chennai 98
91 M/s Orscheln Technologies Pvt Ltd, Plot No 28, North Phase, SIDCO Industrial
Estate, Ambattur, Chennai 98
92 Thiru Dilip Kumbhat, CEO, KLITE Industries, D 10, Ambattur Industrial Estate,
Chennai 50. E Mail : info@klite.in
93 Thiru Kunal Sood, Director, MPI Exports Pvt Ltd, No 50, SIDCO Industrial Estate,
Ambattur, Chennai 98
E Mail : mpikunal@dataone.in
94 Thiru Sadhuvan, A/s Alanbright Steel ; E Mail : sadhuvan@alanbrightsteel.com
95 Thiru M Lakshmana Rao, M/s Suraa Silicates, No 398, SIDCO Industrial Estate,
Ambattur, Chennai 98; E Mail : suraasilicates@gmail.com
96 M/s Kwality Brright Steel Allo, No 25, SIDCO Industrial Estate, Ambattur,
Chennai 98
97 M/s Pentagon Services, SIDCO Plot No 31A/8, Ambattur Industrial Estate,
Chennai 98
98 Thiru Natarajan Palaiappan, M/s Sellvinda, SIDCO Plot No 12, Ambattur Industrial
Estate, Chennai 98
99 Thiru Y J Shamsuddin, Director, Polyfit Fabrications P Ltd, 3 B, SIDCO Industrial
Estate
100 Chief Executive, Autocap Industries, Plot No.190, 191 & 192, Sidco Industrial
Estate, Ambattur, Chennai 600 098. E-mail: autocap_2499@bsnl.in
101 Thiru Muthu, Manpro Equipments Pvt Ltd. 95-d/3, Ambattur Industrial Estate,
Chennai 58
102 Tamil Nadu Thermal Treaters, 92-A, SIDCO Industrial Estate, Ambattur, Chennai
600 098
103 Annai Enterprises Pvt. Ltd., No. 5 & 6, Tiny sector, Ambattur Industrial Estate,
Ambattur, Chennai 600 058
SL NO NAME & ADDRESS
104 Dynamic Engineers, SP 17/52, 3
rd
Main Road, Ambattur Ind. Estate, Chennai 58
105 Thiru Mohamed Habib, Managing Director, A.I. Enterprises Pvt. Ltd., No. 26,
Sidco Industrial Estate, Pattravakam, Chennai 600 098.
106 Thiru M. Dinesh kumar, M.K. Engineering Works
107 Thiru S.N. Swamy, Managing Partner, Sharana Industries, 44-A, Southern Avenue,
Ambattur Industrial Estate, Chennai 600 058. E-mail: info@sharanapower.com
108 Thiru S.K. Jain, Managing Director, Jain Rubbers Private Limited, F-75, sipcot
Industrial Complex, Gummidipoondi 601 201. e-mail jainrubbers@yahoo.com
109 Thiru Stephen K Thomas, Director, Fabrimech Engineers Pvt. Ltd., No. 32, Sidco
Industrial Estate, Ambattur, Chennai 600 098
110 Thiru Kasinathan, Director, Sree Lakshiram Wires Pvt. Ltd., No. 230, N.P. Sidco
Industrial Estate, Ambattur, Chennai 600 098.
111 Thiru V. Ramani, Annai Thread Tools
112 Thiru Y.J. Shamsuddin, Director, Polyfit Fabricators Pvt. Ltd. 3-B (NP) Sidco
Industrial Estate, Ambattur, Chennai 600 098. e-mail: polyfit_fab@yahoo.co.in
113 Thiru Daniel F. Vanak, Managing Director, Vanjak Sales Pvt. Ltd. 343, Sidco
Industrial Estate, Ambattur, Chennai 600 098. e-mail:info@vanjax.com
114 Thiru A. Chandran, Dynamic Engineers, SP 17/52, 3
rd
Main Road, A.I.E.
Ambattur, Chennai 58
115 Thiru K. Ayyappan, Managing Partner, ARC Die Castings, Plot No. 48 & 49,
Ambattur Industrial Estate, Chennai 600 058. e-mail:arcdc@rediffmail.com
116 Thiru Satish Kumbhat, E Mail : holo@kumbhat.com
117 Director.
Hi-tech CNC Marketing & Services, Old No. 56E, new No. 49 SIDCO Industrial
Estate, Ambattur, Chennai 600 098. e-mail: info@hitekcnc.com
118 Thiru S. Shanmugam, Managing Partner, No. 123, SIDCO Industrial Estate,
Railway Station Road, Chennai 600 098
119 Thiru A. Kumar, Partner, M/s. Gemini Paints ; E Mail :
Gemini_paints@airtelmail.in
120 Thiru G. Munikannama Naidu, Bright Engineers, 444, SIDCO Est. Ambattur,
Chennai 600 098.
121 Thiru M. Lakshamana Rao, Suraa Silicates, No. 398, Sidco Industrial Estate,
Ambattur, Chennai 600 098. e-mail: suraasilicates@gmail.com
122 Thiru M. Srinivasan, RR Leather Products Pvt. Ltd. 186, Sidco Industrial Estate,
Ambattur, Chennai 96
123 Thiru K. Ayyappan, Managing Partner, Hybrid Autocast ; E Mail :
ayyappan_69@yahoo.com
124 Thiru T. Suresh, Managing Partner, MRV Industries, 438, sidco Industrial Estate,
Ambattur, Chennai 98.
125 Hargos Alloy Foundry, 2A South Phase, Ambattur Industrial Estate, Chennai 58.
e-mail:vijaypwadhwa@gmail.com
126 The Proprietor, Weldone Technocrats, 3-B, Ist Cross Road, Sidco Industrial Estate,
Chennai 98.
127 Thiru S. Vairamuthu, Sarang Autoparts Pvt. Ltd. 49B, Sidco Industrial Estate,
Ambattur, Chennai 98.
SL NO NAME & ADDRESS
128 Thiru J. Ganesh, Jay Engineering works, 422 Sidco Industrial Estate, Chennai 98.
129 Thiru K. Saisathyakumar, Managing Partner, Adithya Engineering L-23, Ambattur
Industrial Estate, Chennai-58. e-mail:saimen1964@rediffmail.com
130 Sudarsan Technologies Inc. 303, SIDCO Industrial Estate, Ambattur, Chennai 98.
131 Thiru Murugesan, TTK Healthcare Ltd, 290 Sidco Industrial Estate, Ambattur,
Chennai 98.
132 Thiru G. Raman, Best Forgings (P) Ltd. K,33, Ambattur Industrial Estate,
Ambattur, Chennai 58.
133 Director, Schori Blasting and Metal Spraying Pvt. Ltd., 94-A/2, Developed Plot, III
Main Road, Ambattur Industrial Estate, Chennai 58.
134 On Load Gears, No. 432, 433, SIDCO Estate, Ambattur, Chennai 98. E-mail: olg-
info@onloadgears.com
135 Thiru A. Ramesh, Preci-Com CNC, K-19, Ambattur Industrial Estate, Chennai
58. e-mail: precicomcnc@yahoo.com
136 Sri Vibhava Enterprises, No.24/1, SIDCO Industrial Estate, Ambattur, Chennai
98.
e-mail: srivibhava@vsnl.com
137 Thiru K. Ayyappan, Managing Partner, ARC Die Castings, Plot No. 48 & 49,
Ambattur Industrial Estate, Chennai 58.
e-mail: arcdc@rediffmail.com
138 Thiru K. Ayyappan, Managing Partner, Hybrid Auto Cast, No. 256, SIDCO
Industrial Estate, Ambattur, Chennai 98.
e-mail: hybrid97@rediffmail.com
139 Thiru A Sekar, GM, M/s Anupam Snacks P Ltd. No 262, Sidco Industrial Estate,
Patravakkam, Chennai 98
E Mail : bantval_castings@airtelmail.in
140 Thiru K Sai Sathya Kumar
Managing Partner Adithya Engineering L-23, Ambattur Industrial Estate, Chennai-
58.
141 Thiru S N Balasubramanian, President, Industrial Complex Manufacturers
Association, Export Promotion Industrial Park Bank Builidng, Old Military Road,
SIPCOT Industrial Comples, Gummidipoondi 1
142 M/s S M Tower Technology, No SP 83, Industrial Estate, Ambattur, Chennai 58
143 Thiru Veera Iyyappan, C&MD, Tamilnadu Castings P Ltd, No 104, Old No 188,
SIDCO Industrial Estate, Ambattur, Chennai 98
144 Thiru Ajay Tulsian, Director, Tulsian Refinery ; E Mail :
tulsianrefinery@hotmail.com
145 Pioneer Printing Ink Co, SP 19, Ambattur Industrial Estate, Chennai ; E Mail :
chiharam_pioneer@yahoo.co.in
146 Protech Containers P Ltd, New No 49, Old No 26, B/2, SIDCO Industrial Estate
North, Ambattur, Chennai
147 B Vinodha Jain, HR Head, Mercury Fittings P Ltd, E Mail :
hr@mercuryfittingsindia.com
148 Thiru R R Ravichandran, CEO, M/s ALIND, 39/146A, Off 1
st
Main Road,
Ambattur Industrial Estate, Chennai 58
SL NO NAME & ADDRESS
149 M/s Southern Organo Products P Ltd, Plot No 15 C (N.P), SIDCO Industrial Estate,
Ambattur, Chennai 98
150 Thiru S Pradeep, Manager, V.K.Industries, 24/2, SIDCO Industrial Estate,
Ambattur, Chennai. E Mail : sampathpradeep1201@gmail.com
151 Thiru M Balachandran, Hon Gen Secretary, Ambattur Industrial Estate
Manufacturers Association, SIDCO AIEMA Towers, 1
st
Main Road, Ambattur
Industrial Estate, Chennai
152 Thiru C S Vijaya Kumar, M/s B S Engineering, Plot No 55 G, SIDCO Ambattur
Industrial Estate, Chennai ; E Mail : csvijay@yahoo.com
153 The Principal, M/s National Engineering College, K.R.Nagar, Kovilpatti, 628503,
Thoothukudi District, Tamil Nadu
154 The Chairman, Salem Marriage Halls Welfare Society, 2/335, Vidyalaya Road,
Eastern Street ,Seerangapalayam, Salem 636007
155 Thiru R Kumaran ; E Mail : penkumaran@gmail.com
156 Thiru S Balasubramani, 25, Kulakkaraj Street , Kilpennathur Post, Tiruvannamalai
District
157 Thiru N V Govindan, 38/91, Sannadhi Street, Tiruvattipuram, Seiyyar 604407,
Tiruvannamalai District
158 Thiru R Gopalasami & Others, Address not available ( Points may be taken up)
159 The Chairman, Ambapettai Powerloom textiles Manufacturers Association,
447/152, Thiru V.K.Patahai, Ammapettai, Salem 636003
160 Thiru A Shelly Raj Kumar, 306 ; 2-132-6, Meenakshi Nagar, Narasothipatty, Salem
636004
161 Thiru E Aramugam, Federation of Welfare Associations of Anakaputhur Pammal,
No 22, Thiruvalluvar Main Road, Thendral Nagar, Anakaputhur, Chennai 70
162 Thiru N S Ramesh Achary, All India Viswakarma Association, 11/6,
Bangaramman Thunai Street, Poonga Nagar, Chennai 3
163 The Chairman, Tamilnadu Fish Growers Welfare Association, No 32,
Sunnambukara Street, Orthanadu, Tanjavur District
164 Thiru K R Subramanian, No 3, Maharaja Surya Road, Alwarpet, Chennai 18
165 Thiru S Murukaiyan, 76, Nanjappan Gounder Puthur, Punchasaikkalamangalam
Village, Erode District 638153
166 Thiru V Gunasekaran, Ex Village Administrative Officer, Oor Paramparai
Dharmakartha, Pallathathanoor, Chandrapillai Valasai Post, Vazhapadi Municipal ,
Salem District 636104
167 The Chairman, District Consumers Rights Committee, No 339, Railway Station
Road, Sinnapallivasal Building , Virudhunagar 1
168 Thiru Ram Subbaiah, Gen Secretary, Viswakarma Jananayaka Munnani, No 16,
Mapillainayakankula Street, Sandhukadai, Periya kadai Veedhi, Trichy 8
169 Thiru Sangilimuthu, 19/17 B, Periyar Nagar, Varaganeri, Trichy 8
170 Thiru S. Muthukrishnan, 44A/105, Anavaratha College street,
171 Thiru R Janakiraman, District Chairman, Kanchipuram Pallavan City, 149/64-D,
Salai Street, Kanchipuram 2
172 Thiru Ramasubramanian, Advocate., High Court, Chennai
173 The Secretary, Nannilam Consumer Welfare Association, Thuthukudi, Nannilam
SL NO NAME & ADDRESS
609504, Thiruvarur District
174 Thiru P D Venkatesan, 3/31, Narmada Street, Balaji Nagar, Irumbuliyur,
Tambaram East, Chennai 59
175 M/s Erode Veerappanchatram Powerloom Owners Association, 87, Periyavalasu
Nall Road, Veerappanchatram, Erode 4
176 The Chairman, Tuticorin Small Scale Salt Manufacturers Association 88 A, South
Raja Street, Tuticorin 1
177 Thiru G T Natarajan, No 90, Shenbagavalliamman Kovil Street, Veeravanallur,
Tirunelveli . E Mail : g.t.Boss@gmail.com
178 Thiru N Alaguraja, Gen Manager, M/s S.A.Aanandan Spinning Mills (P) Ltd, Post
Box No 153, Srivilliputtur Road, Rajapalayam 17
179 Thiru N Alaguraja, 21-B, 4
th
Street, Sudharasan Garden, K R Nagar Post,
Rajapalayam
180 Thiru D Rajendran, 56, Veeratikuppam Mathai, Vandimedu, Villupuram
181 Thiru V Srinivasan, Gen Secretary, Madurai Certified Gold Smiths Association, No
8, Eluthanikara Street, Madurai, 625001
182 Thiru R Pannerselvam, Gen Secretary, Tamil Nadu Film Exhibitors Association,
D.R.Maligai, No 2 ( Old No 16), Poes Road, III Street, Teynampet, Chennai 18
183 M/s Tenkasi Goldsmith Association, 38, Swamy Sannathi, Tenkasi 627811
184 The Secretary, Puliyankudi Vattara Siru Visaituri Toyil Urimaiyyalar Sangham ,
New No 2/2007, Sengunthar Valiper Sangha Building, Sundara Vinayakar Kovil
Street, T.N Puthukudi Puliankudi 627855
185 The Secretary, Kovai Tirupur Koolikku Nesavu seiyyam Visaituri Urimeyalar
Sanghamghalin Kuttaimaippu, Somanur 641668
186 The Secretary, Tiruppur District Rice Mill Owners Association, 160, Sennimalai
Road, Kangayam 638701, Tiruppur District
187 Thiru V Krishnamoorthy, Retd Chief Head Draughtsman, TNEB. 67/34,
Palaiandavar Sannathi Street, Kumbakonam 1
188 Thiru P Dhanapalan, Chairman, Tirupur Viswakarma Aparana Thozilalar Sangham,
Viswakarma Kamatchiamman Kalyana Mandapam, ABT Road, L.R.G L. Out,
Tiruppur 4
189 Thiru K P A Palaniswamy, President, Salem Handloom & Powerloom Cloth
Manufacturers and Exporters Society, Artloom House, 119, Appu Chetty Street,
Shevapet, Salem 2
190 Thiru S Srinivasan & Others (No address)
191 Thiru S Krishnaswamy, F 4, A.K..B Kamalam, No 33, Ayyasamy Street, Nehru
Nagar, Chrompet, Chennai 44
192 M/s T R S Trust, 108/1, Pillaiyar Koil Street, Jaffarkhan Petai, Chennai 83
193 Thiru H Chandrakumar, M Perumalpatti, M Kallupatti , Perayur Taluk, Madurai
625535
194 Thiru K T Natarajan, Ammu Akkam, 472, Park II Avenue, Nesamani Nagar,
Nagarcoil 1
195 Thiru K Ganapathy, General Secretary , Krishnapuram Residents Association, D
No 1/56, Mukundan Street, Krishnapuram , Ambattur, Chennai 53
196 Tmt P Tulasi, D No 100, Maharaja Puram, Tirukodandanam Post, Puthukottai 2
SL NO NAME & ADDRESS
197 Tmt Vasumathi, ; E Mail : vasumathi1965@gmail.com
198 Thiru P Appandairajan 22 Chinna Jain street, Kosappalaiyam, Aarani,
Tiruvannamalai dist. 632 301
199 Thiru K Gopu, Plot No 24, D No 14, Ramesh Nagar, Valsaravakkam, Chennai 87 ;
E Mail : kgopu24@gmail.com
200 Dr K Selvaraju, Secretary General, The Southern India Mills Association, Post Box
3783, 41, Race Course, Coimbatore 8
201 Thiru T Loganathan, Ex Member Chennai Fishing Harbour Management
Committee, Ex Trustee, Marmagao Port Trust, GOA, Old No 18A, Jeevarathinam
Nagar, 1
st
Street, Adayar, Chennai 20
202 Thiru N S Venkatesan, 76, 5
th
Cross Street, Mahalakshmi Nagar, Adambakkam,
Chennai 88
203 Thiru C R Lakshminarayanan, E Mail : lakshminarayanan1961@gmail.com
204 Thiru K Venkatraman ; E Mail : kvn@lucastvs.co.in
205 Thiru C L Annapoorani ; E Mail : er.annapooranicl@gmail.com
206 Thiru R. Chellaswamy, 338, M.S. Road, Near Bensam Hospital, Vetturnimadom
(PO), Nagercoil 629 003.
207 The Secretary, The Arasan Aluminium Industries (P) Ltd,, 1-c/4, Thiruthangal
Road, Near Union Bank of India, Sivakasi 626 123. e-mail:
aluminium@arasanwetwo.com
208 Thiru PCP. Athithan, Chairman, Sri Vaikuntam Taluk Rice Mill, 3, Market Road
Aral, Sri Vaikuntam Taluk, Tuticorin Dist.
209 Secretary, Tarapuram Taluka Rice Mill Urimaiyalargal Sangam, Tiruppur Dist.
210 Thiru N. Arumugam, 54, Vadakasi Amman Kovil, 1
st
Street, Sankarankovil,
Tirunelveli Dist 627 756.
211 Thiru A. Venkatakrishnan, 174/12, Perumal Sanithi Mel street, Gangaikondan,
Tirunelveli Dist 627 352
212 Thiru S. Murugesan, Chairman, Tamil Nadu Balmoil Marasagupadiyalargal
sangam, Thungapuram Post, Kunnam Vattam, Perambalur dist 621 716.
213 Thiru P. Gouthaman, No address
214 Thiru K. Vijayan, Chairman, Tamil Nadu Minuzhiyar Mathiya amaippu, 27,
Masuthi Street, Chepauk, Chennai 600 005 E-mail: coteecitu@gmail.com
215 Thiru V. S. Natarajan, District Secretary, Gold, Silver, Jewel Thozhilalar Sangam,
RamanathaPuram dist.
216 Ramanathapuram Town goldsmith workers Association, 4k, Ganapathi Complex,
Vandikara Pillaiyarkovil street, Ramanathapuram.
217 Thiru A. Velumani, Chairman of Nagarmantram, Palani 624601.
218 Chairman, Agila India Visvakarma Peravai, 11/6, Bangaramman Street, Poonga
Nagar, Chennai 600 003.
219 Thiru S. Rajamanickam, Deputy Secretary, South India Consumer Protection
Society,Pachamalayan Kottai, Sembatti(via), Dindigul dist 624 707.
220 Theni Visvakarma Nagai Thozhilalar Sangam, 69/45, Sokkar Street, Theni 625
531, Theni Dist.
221 Thiru C. Arjunan, 9/3. Murugesanar Street, Chengalpet 603 002, Kanchipuram
Dist.
SL NO NAME & ADDRESS
222 Thiru M. Aathappan, Secretary, Thiruthuraipoondi Chamber of Commerce,
Kaasukadai Street, Thiruthuraipoondi.
223 District General Secretary, Tamil Nadu Nagai Thozhilalar Mathiya Sangam, 33,
Royal Plaza, New Building, Koolakadi Bazaar, Tirunelveli 627 006.
224 District General Secretary, Tamil Nadu Nagai Thozhilalar Mathiya Sanga Peravai,
478-A, Periyakadai Veethi, Trichy 620 008.
225 Thiru Michael Motha, Partner, Veppalodai Salt Corporation, 13-A/1, Pillayar Koil
Street, Meenakshipuram West, Tuticorin 628 002 Tuticorin Dist.
226 Thiru S. Krishanan, No. 17/9 (Old No. 9, New No.17), Chengalvarayan Street, 3
rd

floor, Triplicane (Near By Kellet High School and Hold Sangeetha) Chennai 600
006
227 Thiru S.V. Gopala Krishnan, Thiruvanmiyur, Chennai 600 041.
228 Dr. M. Annalakshmi, President Association for Non-Traditional Employment for
Women, No. 16/107, AH Block, 4
th
street, Shanthi Colony, Anna Nagar, Chennai
600 040.
229 Thiru G.K. Anbu, 5/1180, Chettiappa Gounder street, Senthil Nagar, Dharmapuri
636 705
230 Tmt S. R. Vijaya, 3/2, Ist floor, Aruna Nagar 1
st
street, Srirangam, Trichy 6.
231 Thiru R. Venugopal, President, Mahkavi Bharathi Nagar Development House
Owners Welfare Association, A.P. No.927, 12
th
, Mathiya Kuruku Street, Mahkavi
Bharathi Nagar, Chennai 600 039.
232 Thiru M.G Devasahayam, Managing Trustee, Citizens Alliance for Sustainable
Living (Sustain) Un-Habitat Centre, 5
th
Floor, CMDA Tower-I, Egmore, Chennai
600 008
233 Thiru V. Sreekanth ; E Mail : sreekanth13@hotmail.com
234 Thiru S. Vasudevan, President, Federation of Chennai Suburban (south) welfare
Association, Plot No. 37, 3
rd
street, Sheela Nagar, Puzhuthivakkam, Chennai 91.
235 Thiru A. Thangavel, Chairman, Visvakarma Mahajan Sangam. 25, Ellamvallavan
street, Samathanapuram, Palaiyankottai.
236 Thiru S. Sankaran, District Secretary, Agila India Visvakarm Peravai, Old No.16,
New No.59, Gandhi Road, Vandavasi 604408. Thiruvannamalai dist.
237 The Secretary, Vizhupuram Vattam, Nagaram Visvakarma Gold, Silver, Ornaments
Thozhilalar Sangam, 2, Mahavishnu Street, Vizhupuram 605602
238 Thiru C. Venkatesan, Sridevi Nagar Kudirupor Nalasangam, Sridevi Nagar,
Ganapathi, Kovai 6.
239 Thiru M. Palpandian, Chairman, Visvakarma Uravinmurai, Kumuthi 623 603.
240 Thiru S. Gopalakrishnan, Pokkampatti, Thangalacherri PO, Tirumangalam taluk,
Madurai Dist.
241 Thiru G. Venkatesan, Gayathiri Nagar Nalasangam, 11, 3
rd
street, Gayathiri Nagar,
Irumpuliyur, Tambaram East, Chennai 59.
242 Thiru S. Gnanagurupackiam, Mill Manager, Nachiar Spinning Mills (P) Ltd., Post
Bag No. 23, Srivilliputtur Road, Rajapalayam 626 117.
243 Chairman, Erode District Rice Mill Owners & Nel, Rice, Motha Business
Association, Opp. To R.R. Lodge, A.N. Towers, 227, Satthi Road, Erode 638
003.
SL NO NAME & ADDRESS
244 R. Natesan, Secretary, Sooriyampalayam Cooli Paavu Ottum Visaithari
Nesavalargal Sangam, Sooriyampalayam 637 209, Thirusengodu Vattam,
Namakkal Dist.
245 Thiru P.J. Raman; E Mail : pjraman2000@yahoo.com
246 Viom Networks Limited, Celestial Point, No.45, Damodaran street, Usman Road,
T.Nagar, Chennai 17
247 Indus Towers Limited, ESPEE IT Park, 5 (N.P) Jawaharlal Nehru Road, 5
th
floor,
Ekkaduthangal, Chennai 97.
248 Chennai Network Infrastructure Limited, Old No. 34/1 DL, New No. 403L, 7
th

Floor, Samson Towers, Pantheon Road, Egmore, Chennai 8.
249 Thiru M.K.Narayanan, Circle Head, ATE India Tower, 56, Omkar Building, 2
nd

floor, North Boag Road, T.Nagar, Chennai 17.
250 Thiru N. Subash Chandrabose, Agila Bharatha Construction and Amaippusara
Thozhilalar Mathiya sangam, No. 235, Main Road, S. Puthur, Thiruvidaimaruthur
Taluk, Tanjaore dist 612 205.
251 Thiru G.T. Natarajan, 90, Shenbagavalliamman kovil west street, Veeravanallur,
Tirunelveli district 627426
252 Thiru K.V. Selvam, Tamil Nadu Porsollar Nalavariya Members, 34/31, Amaichur
Kovil street, Vizhupuram 605 602.
253 Sree Jeya Soundharam Textile Mills Private Limited, 212, Ramasamy Nagar,
Aruppukottai 626 159.
254 The Factory Manager, Aruppukottai Shri Ramalinga spinners (P) Limited, 212
Ramasamy Nagar Aruppukottai 626 159, Virudhunagar District, Tamilnadu.
255 Thiru J. Sridhar, No.6, 5
th
Pradhana Salai, Vijaya Nagar, Velacherry, Chennai 42.
256 Thiru M. Eswaran, Ward-14, Gopalasamudram, P.O., Ambai Taluk, Nellai district
257 Thiru A. Kalaivanan, General Secretary, Salem Mandalam Kumaran Visaithari
Pothu Thozhilalargal Sangam, 1/126, Thangasalai Veethi, Vennanthur 637505,
Namakkal dist.
258 Thiru K.M. Sathanantham, Chairman, Salem Namakal Mavatta siru-kuru
Visaithariyalargal Sangam, 4/10, Ashok Nagar, Venanthur 637 505, Namakkal
District.
259 Thiru A.S. Mathesvaran, Salem Namakal Mavatta siru-kuru Visaithariyalargal
Sangam, 4/10, Ashok Nagar, Venanthur 637 505, Namakkal District.
260 Thiru A. Kalaivanan, Secretary, Salem Namakal Mavatta small-tiny
Visaithariyalargal Sangam, 4/10, Ashok Nagar, Venanthur 637 505, Namakkal
District.
261 Thiru K. Rengaraju, Director, Meenthurai Aanaiyam, Nirvaga Aluvalaga
Kattadangal, Teynampet, Chennai 6.
262 Thiru Rajendra Ratnoo, I.A.S., Director of Fisheries, Teynampet, Chennai 600
006.
263 President, Tamil Nadu Small & Tiny Industries Association, No.10, G.S.T. Road,
Guindy, Chennai 32. e-mail: tanstiaorg@gmail.com
264 Thiru N. Subramanian, 1/569 II Cross Street, Karthikeyapuram, Madipakkam,
Chennai 91
265 Thiru S. Sendhil Kumar by E Mail.
SL NO NAME & ADDRESS
266 Thiru V. Jegadesan, Secretary, No. 53, Srinivasa Complex, upstair, S.P. Kovil
Street, Namakkal
267 Thiru C. Radhakrishnan, Taxation Manager, Johnson Lifts Pvt Ltd. C3,
Subrahmanya Flats, No. 199, Lake View Road, West Mambalam, Chennai 33. e-
mail: chivukularadha@hotmail.com
268 Thiru P.G. Vetrivel, Secretary, Tuticorin District Rice Mill & Nel, Rice Motha
Viyabarigal Sangam, No.103/b1 South New street, Turicorin 628 002
269 Chairman, Kovai Tirupur District Coolie Nesavu Seiyum Visaithari Owners
Association, Power House Road, Somanur 641 668, Kovai dist.
Vice Chairman, Kovai Tirupur District Coolie Nesavu Seiyum Visaithari Owners
Association, Power House Road, Somanur 641 668, Kovai dist.
Assistant Secretary, Kovai Tirupur District Coolie Nesavu Seiyum Visaithari
Owners Association, Power House Road, Somanur 641 668, Kovai dist.
270 Thiru A. Chandraiah, Joint Secretary, Federation of Cold Storages, No.76/4A2,
Madurai-Dindigul NH, Thiruvalavayanallur P.O. Nagari, Madurai 625 221. e-
mail:tncoldstorages@gmail.com
271 Thiru R. Rajachidambaram, District Secretary, Tamil Nadu Agriculturist
Association, Naaramangalam p Post, Kunnam Circle, Perambulur district 621
109.
272 Thiru V.S.T. Samsul Aalam, Ex.M.L.A., Mempalayam Anaithu Sunna Valjamath
Pallivasalgalin Kootamaipu, 100, Usmaniya Arabi college Valagam, Anna Veethi,
Mempalayam 627 005, Tirunelveli.
273 Thiru G. Aravindan, Secretary, District Consumer Information Centre, 8/130-C,
Madurai-Rameswaram Road, Paramakudi 623 707, Ramanathapuram District. E-
mail: dcic_nupk@rediffmail.com
274 P. Rajendran, Chairman, Dhandurai Agriculturist Association, No.22, dhandurai
village, Poonamalle circle, Tirunallur District, Door No. 149, Arijar Anna salai,
Dhandurai, Pattabiram, Chennai 72.
275 Thiru V. Neelakandan, District secretary(Perambulur), Tamil Nadu Agriculturist
Association, A. Mettur Post, Veppanthatai circle, Perambulur district 623 103.
276 Thiru G. Ethirajulu, No. 42/28, Nallapa Nagar, Mahalingapuram, Pollachi
642002.
277 Thiru R. Manohar, 9/2-4A, 1
st
floor, SPV complex, Vaithiyalingam street,
Saminathapuram, Salem 9.
278 Thiru P. Chinnathambi, Chairman, Salem District Small-Tiny Powerloom Textiles
Producers Association
279 Thiru P. Rajendran, Gurusamypalayam Siru Visaithari, Jouli Urpathiyalargal
Nalasangam.
280 Thiru K.R. Dakshinamoorthy, Financial Trustee, Avraam Ami Trust, No.9,
Chairman Thulasiram I Lane, East Veli Street, Madurai 625 001.
281 Thiru A. Jayaraman ; E Mail : jayaramanaocb@gmail.com
282 Thiru Prabhakar Jebaseelan, Salem District Small Scale & Tiny Industries
Association, No.1, Park Street, Opp. Alagapuram Police Station, Fairlands, Salem
636 016. e-mail: sadisstia@gmail.com
283 Thiru U. Elumalai, 5/29 Unjamara Thottam, Reddiyur Azhugapuram, Salem 636
SL NO NAME & ADDRESS
004.
284 Thiru C. Rajamanikkam, 37-A, Menakshi Nagar, TVS Colony, Asthampatti,
Salem-7.
285 Thiru R. Sekar, 331, Gandhi Nagar,
Sollampallam, Salem 5.
286 Tanjur District 37
th
Ward Residents Welfare Association, 20, Kamakshi Amman
street, Registrar colony, Medical college Salai, Tanjur 631 004
287 Thiru A. Mohamed Dawood, Secretary, Rice Mill Owners Association, 3/12,
T.T.P. Main Road, Thennavarayanallur, Mangudi (PO), Tiruvarur 610 103.
288 Thiru C. Shanmugam, Pachaagoundar palayam, Periya Veera Sangili Post,
Vijayamangalam Way, Perunthurai circle, Erode District
289 Thiru T. Arumugam, Vice President, Pioneer Jellice India P. Limited,
Semmankuppam, Cuddalore-Chidambaram Main Road, Cuddalore 607005. e-
mail: pmclcud@pioneerasia.com
290 Thiru K. Mariappan, President, Salem District Small Scale & Tiny Industries
Association No.1, Park Street, Opp. Alagapuram Police Station, Fairlands, Salem
636 016. e-mail: sadisstia@gmail.com
291 Thiru Subas Chandra Saha, Circle Head TN, Tower Vision India Private Limited,
AMG Tower, 2B, 2
nd
floor, No. 28, Lawyer Jangannathan Street, Alandur, Chennai
16.
292 Motel Highway, 89, Bangalore Trunk Road, Near Poonamalle, Chennai 600 124.
293 Thiru T.S. Gopalakrishnan, Plot No. 14, Ist Main Road, Damakambal Nagar,
Medambakkam, Chennai 126.
294 Secretary, Salem Velli Chain Urpathiyalar Sangam, 99/33, Kabilar Street, Salem-2.
295 Thiru M. Krishnan, 6/173, Ooratchi Ondriya School street, Devarkulam post,
Shankarankovil circle, Tirunelveli dist 627 951
296 Thiru VR. Muthukaruppan, No.1, Annanagar, Madurai 625 020.
297 Thiru S.M. Loorde & Village People, K.K. Pudur
298 Dr.R. Krishnamoorthy, Old No. 16, New No.45, Mettu street, Chinna Puliampatti,
Aruppukottai 626 101, Viruthunagar District.
299 General Secretary, A Consumer Association, 141/58, Daily Market, Kadayanallur
627 751.
Thiru K. Mahalingam. 13A, South vilai street, Maavadigal, Kadayanalur.
Thiru P. Ganesan, 3/29, Mathang Kovil street, Mela Kadayanallur, Kadayanalur
627 751.
Thiru T. Chandigavel, 2
nd
street, Kadayanalur 627 751.
Thiru S. Murugesan, 91A, Sudalaiappan kovil street, Kadayanalur 627 751.
Thiru V. Alangaram, 25/6, Sakthi Vinayagar kovil street, Muthukrishnapouram,
Kadayanalur.
Thiru V.M. Kader Mydeen, 122, Main Road, Thangal Medicals, Kadayanallur.
Thiru S. Thirumalai Velu, 10/1, Chidhambara kovil street. (address not clear)
Thiru G. Nayenar, 91A, Sudalaiappan kovil street, Kadayanalur 627 751.
Thiru A. Muthayiah, 62 Naatamai street, M.K. Puram Kadayanalur.
Thiru K. Ramasamy Naidu, 45 Mariamman Kovil sannathi street, Kadayanalur
627 751. Tirunelveli dist.
SL NO NAME & ADDRESS
300 President, Kangayam Taluka Arisi Aalai Urimaiyalargal Sangam, 6/33-A,
Aaiyachami Nagar Colony Main road, Kangyam 638 701. Erode dist.
301 Thiru S.V. Devarajan, President, The South India Spinners Association, Flat No.
103-A Block, 1
st
floor, Raheja Centre, 1073 & 1074 , Avinashi Road, Coimbatore
641 018. e-mail:sispa_cbe@yahoo.co.in
302 Thiru M. Vasudevan, Chairman, Viswakarma Gold Smiths Association, 51, South
Bazaar, Kovilpatti 628 501
303 Thiru V.R. Govindarajan, C.1, Muthunathar kailash, 227, Keezh adaiyavalanjan
street, Srirangam 620 006.
304 Dr. C. Srinivasan, 2/249, 7
th
street, Kalvinagar, Rajambadi, Palkalainagar, Madurai
625 021.
305 Thiru A. Murukantham, Chairman, Porsollar Samuga sangam, Muthukulathur.
306 Thiru G. Shankar Executive Vice President-Finance, Brakes India Limited, Padi,
Chennai 50. e-mail: bitvs@md2.vsnl.net.in
307 Thiru Ganapathi Subramanian, Srinivasa Nagar, Puthu Perukalathur, No.22-A, S.V.
Raghavan Road, Chennai 63.
308 Thiru K.R. Thangaraj, President, No.10, G.S.T. Road, Guindy, Chennai 32. e-
mail:tanstiaorg@gmail.com
309 Thiru N.S. Jayalal, N.Kannanoor & Post K.K., Dist 629 158.
310 Thiru V.N. Dasan, 2/629, Ponni Amman Koil, 1
st
cross street, Madipakkam,
Chennai 91.
311 Thiru V. Nithiyanantham, President, Tamil Nadu Micro and Small scale Industries
Welfare Association, 2/10, Bharathiyar street, Ambal Nagar, Ekkattuthangal,
Chennai 32. e-mail:tasiowa@yahoo.co.in
312 Thiru T. Moorthy, 69, School street, Velayuthapuram, Aruppukotao 626 101,
Viruthunagar district.
313 Thiru S. Akesh, Viji Automobile Engineers, Opp. Suhalaya Nursing Home, 5-A,
Gandhi Road, Salem 636 007
314 Thiru K. P. Srinivasan, Namakkal District Powerlooms cooliku urpathi seiyum
visaithariyalargal Nalasangam, 191-E, Peranthar Forest, Chinnapanayakanpalayam,
Kumarapalayam 638 183
315 Secretary, Avinasi Ricemill and Nel, Rice Viyabarigal Sangam, 316,
Madathupalayam Road, Avinasi 641 654. Tirupur District.
316 Thiru J. Nagabushnam, Secretary, Sree Venkatraman Nagar, Narpani Mandram,
No.11/3, 66
th
street, Korattur, Chennai 80.
317 Thiru M.R. Anandan, Chairman, Thalavaipuram Vattara Navina Arisi Aalai
Athibargal Sangam, 1/182, Kamaraj Nagar, Thalavaipuram 626 188.
318 Thiru K. Saraswathi, Secretary General, The Madras Chamber of Commerce &
Industry, Karumuttu Centre, 1
st
floor, New No. 634, Anna Salai, Nandanam,
Chennai 35. e-mail: madraschamber@madraschamber.in
319 Thiru K.G. Boopathi, District Chairman, Thiruvallur District Agriculturist Society,
Balaji Aravai Aalai, Thiruvur & post, Thiruvallur District 602 025.
320 Thiru G. Ramakrishnan, Dist Secretary, Communist Party of India (Marxist), B.R.
Ninaivagam, 27, Vaithiram street, T. Nagar, Chennai 17.
321 Thiru S. Chandrasekar, President, Small Industries & Business Entrepreneurs
SL NO NAME & ADDRESS
Association, No.10, GST Road, Guindy, Chennai 600 032.
322 Thiru K.V. Kanakambaram, President, National Confederation of Small Industry
No.10, GST Road, Guindy, Chennai 600 032.
323 Thiru K.V. Kanakambaram, President, The Industrial Estate Manufacturers
Association, RV Tower, No.10, GST Road, Thiru-Vi- Ka- Industrial Estate,
Guindy, Chennai 600 032. e-mail: iemaguindy@airtelmail.in
324 Thiru T.V. Hariharan, President, Chennai District Small Scale Industries
Association, No.10, GST Road, Guindy, Chennai 600 032.
e-mail: cdissiassomse@gmail.com
325 Thiru S. Sivaraman, Ph.D., D. No. 35, 6
th
street, I-Extension (Rented House)
NGO Colony, Melagaram Post 627 818, Tenkasi Taluk, Tirunelveli Dist.
326 Thiru K. Mariappan, President, SADISSTLA, Small Scale & Tiny Industries
Association, No. 1, Park Street, Opp. Alagapuram Police Station, Fairlands, Salem
636 016, e-mail: sadisstia@gmail.com
327 Thiru Medical K. Paramasivam, Planning Commission Chairman, Tirumurthi
Neer Thekka Thitta Kuzhu, 14, Imamkhan Street, Pollachi 642 001
328 Thiru K. Ravichandran, Foretec Engineers, 108, Tex Spares Complex, 19 & 20 Cox
Street , Kattoor, Coimbatore 641 009, e-mail : foretec@gmail.com
329 Thiru C. Govindan, State General Secretary, Tamil Nadu Min Amaippalargal
Madhiya Sangam, 42, Thiru-Vi-Ka Paadhai, Ammapettai, Salem 3
330 Thiru K. Sampath, President, HOSTIA, [Hosur Small and Tiny Industries
Association, No.20-21, Sipcot Shopping Complex, Opp. LAL, Hosur 635 126
e-mail: hostia.hosur@gmail.com
331 TNEB Engineers Sangam, 793, Annasalai, Chennai 600 002, Pudukkottai Branch
332 Thiru Amman K. Karunanethi, President, Association of Tiny & Small Industries
(ATASI), Amman Industry, No.1, Main Road, Vikravandi 605 652, Villupuram
333 Thiru T.R. Kotteeswaran, Secretary, Indian Chamber of Commerce & Industry
84-B, South Raja Street, Tuticorin 628 001. e-mail : admin@iccituticorin.com
334 Thiru C. Govindan, General Secretary, Consumer Council of Salem Region
19-E, New Street, Kowndampavadi, edappadi 637 101, Salem District
335 Er. S. Nirmala, B.E, Superintending Engineer, Tiruppur Electricity Distribution
Circle,19A, 19B, Jothi Nagar, Perumanallur Road, Tiruppur -641 602.
336 Thiru G. Ramakrishnan, President, Akila India Viswakarma Peravai, 24, Theradi
Street, Vadakarai, Periyakulam P.O. Pincode 625 601
337 Thiru K Alagappan, District President , Tamil Nadu Indthozhilalargal Munnerra
Sangam, Thozhir Sangam Regd No. 195/CDR, Paramkudi 623 707,
Ramanathapuram District
338 Thiru S. Sukumaran, No.5, Sri Menatchi Apartments, 229/1, Thammannan Road,
Arisipalayam, Salem 636 009.
339 S. Suganyaa, No.88, Perumal Koil Street, Peramanur, Salem 636 001.
340 Thiru M. George, (Retd. N.L.C. Neyveli Employee), 419, Main Road,
Sirumayankudi, Via Kattur Poovalur, Lalgudi Taluk, Trichy 621 706
341 Thiru A. Mariappan, C-III/4, AAI (IAD) Colony,Meenambakkam, Chennai 27
342 Thiru P. Vijayakumar, Circle Head,India Telecom Infra Limited, Old No. 52, New
No. 54, Butt Road, St. Thomas Mount, Chennai 600 016
SL NO NAME & ADDRESS
343 Dr. P. Nagarajan, Executive Director, Aditanar Educational Institution, 86, E.V.K.
Sampath Road, Chennai 600 007.
344 Association Co-ordinator, Thanjai Nagara 37
th
ward Kudirruppoor Nala
Sangangalin Koottammaippu, 20, Kamatchi Amman Street, Registrar Colony,
Medical College Salai, Thanjavur 613 004.
345 Thiru A. Manickam, Secretary, Tamil Nadu Nalivadainthor Siruvisaithari Thuni
Urpathialarkal Sangam, 130/38, Sengunthan Mettu Street, Ammapettai,Salem
636 003.
346 Thiru A. Karmekam, Secretary, Salem District Offset Printers Association, O/o
General Printers, 70A.V. Iyer Street, Shevapet, Salem 636 002.
347 Thiru S.V. Angappan, General Secretary, Tamil Nadu Electricity Board Accounts
and Executive Staff Union, 29, Meeran Sahib Street, Anna Salai, Chennai 2
e-mail: aesugeneralsecretary@yahoo.com
348 Thiru K. Gopu, Ramesh Nagar & Thirumalai Nagar Residents Welfare Association
Plot No. 22, Shreyas Innovative Apts, Thirumalai Nagar, Valasaravakkam, Chennai
87
349 Tamil Nadu Power Producers Association, 117, P.S. Sivaswami Salai, Mylapore,
Chennai 600 004, e-mail: tnppa@gmail.com
350 Thiru P.J. Raman, e-mail : pjraman2000@yahoo.com
351 Thiru Mahendra Ramdas, President, Tamil Nadu Electricity Consumers
Association, Ground Floor, PSG Tech. Software Park II, Avinashi Road,
Peelamedu, Coimbatore -004, e-mail : tecatn@gmail.com
352 Thiru A. Danapal, Door No. 11/6/25/1,Kanakku Pillai Street,Karuppur Post, Salem
636 012.
353 Thiru S. Kannan,4/256, S. N. Nagar,Uyyakondan Thirumalai,Trichy 620 102
354 Thiru S. Gandhi, President, PESOT . E Mail : gandhibarathi@yahoo.com
355 Thiru P.S. Nagarajan, G1 J.V. Royal Flats, 5/7, Arangan Street,
Vijayalakshmipuram, Ambattur, Chennai 600 053.
356 General Secretary, Federation of TNEB, Pensioners Associations, Regd No.
S.11/1998, 52, Min Nagar, Trichy 620 023
357 Thiru A.K. Hameed, President, Makkal Nala Sangam, No. 182, Sarkaar Thoppu,
Tindivanam 604 001, Villupuram District
358 Thiru S. Dharmalingam, Electricity Consumer, 14-3-86, Panchayattu Union Paada
Salai Street, Jalakandaapouram Post, Mettur Circle, Salem District 636 501
359 Thiru V. Rama Rao, Secretary, Lakshmi Nagar Civic Welfare Association, C42, 6
th

Street, Lakshmi Nagar, Nanganallur, Chennai 600 061, e-mail :
Icwa1990@yahoo.co.in
360 Dr. K. Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association,#2,
Karur Road (Near Beschi College),Modern Nagar, Dindigul 624 001.
chiefadvisor@tasma.in
361 Thiru J. Rajamohan, Secretary, Tamil Nadu Chamber of Commerce &
Industry,178-B, Kamarajar Salai, Madurai 625 009, Email:
mdu_chamber@sancharnet.in
362 Thiru V.S. Manimaran, President, Madurai District Tiny & Small Scale Industries
Association, 1A-4A, Dr. Ambedkar Road, Madurai 625 020. e-mail:
SL NO NAME & ADDRESS
Info@maditssia.com
363 Thiru C.M. Balasubramaniam, President, Poombuhar Nagar Welfare Association,
Old No. 63, New No. 10, 14
th
West Cross Street, Mahakavi Bharathi Nagar,
Vyasarpadi, Chennai 600 039.
364 Dr. V. Shanmugaundaram, Secretary, Indian Medical Association, Coimbatore
Branch, 92, Syrian Church Road, Coimbatore 641 001. e-mail:
imacoimbatore@gmail.com
365 Thiru V. Shunmugavelu, House No. 3, Street No. 8, Subburaj Nagar,
Bodinayakanur, Theni District 625 513 email : vshunmugavel@hotmail.com
366 Thiru D.S. Hanumantha Rao, Former Member TNERC, 4, Thiruchendur Flats, 7,
Babu Rajendra Prasad First Street, West Mambalam, Chennai 600 033.
367 Thiru A Velayutham, Ex-Member, Maharashtra Electricity Regulatory
Commission, 54A/6, Water Tank South Street, C Colony, Perumalapuram,
Tirunelveli 627 007, Email: vel@ieee.org; avelayut@gmail.com
368 Thiru B.V. Chandrashekar, Chief Electrical Distribution Engineer
Southern Railway, Headquarters Office, Electrical Branch, Chennai 600 003.
369 Thiru S. Mahalingam, D3, Tanmaraj Street, IOC nagar, Vilangudi, Madurai
370 Thiru. K. Murugasamy, Uthukuli Circle Rice Mill Owners Association,
Thiruppur, Uthukuli Town. Phone : 04294 260109
371 The President, Mettur Taluk Cloth Manufacturers Association, RKKN Compound,
Salem Road, Opp. High School, Jalakandapuram 636 501, Salem District
372 Thiru. M.N. Radhakrishnan, 48B, Muniappan Koil St, Sevvapettai, Salem 2.
373 Thiru. Loganathan, Retired Postal Staff,New No.1/40, Achari Veedi, (Railway
Line), Palavanatham 632 201.Vellore
374 The General Secretary, Tamil Nadu Anaithu Min Paniyalar Munnetra Sangam,
Dr. Ambetkar Street, Rasagarden, Arumbakkam, Chennai 106.
375 Tharamangalam Selvam Art Silk Powerloom and Handloom Producers
Association, Tharamangalam, Salem 502.
376 Thiru. S.R. Rajagopal, Tamil nadu Poultry Farmers Welfare Association,
Room No.4, Jawans Bhavan, Osur Road, Coimbatore - 018.
377 Dr. K. Prakasam, President, Indian Medical Association, 12, Saradha College
Road, Salem 636 004 e-mail: imasalem_2011@yahoo.com.in
378 Thiru. M. Kannan & others, Proprietor, Tindivanam Rice Millers Consortium P
Ltd., 27, Mailam Road, Tindivanam, Villupuram Dist.
379 The President, Perumdurai SIPCOT Textile Processors Association, R22, 6
th
Cross
Road, SIPCOT Industrial Growth Centre, Perundurai 638 052. Erode District
380 Thiru. K.P. Shanmugam, Secretary, Kongu Front, Kanchee Koil Road, Chithedu
638 102.
381 Thiru. Chockalingam, The President, Katharipulam Uzhavar Mandram,
Katharipulam , Vedaranyam, Nagapattinam Dist.
382 Thiru. K. Mariyappan, Rahul Gandhi Textile Development Association,
Govinda Gounder Thottam, Vellandivalasu Post, Edappadi 637 105.
383 Thiru. A. Settu, State Organizing Secretary, Tamil Nadu Congress Committee,
Govinda Gounder Thottam, Vellandivalasu Post, Edappadi 637 105.
384 Thiru. S. Ruthrabalaji, Vice President, Indian Youth Congress, Govinda Gounder
SL NO NAME & ADDRESS
Thottam, Vellandivalasu Post, Edappadi 637 105.
385 Thiru. Raja. Ramalingam, President, Tamil Nadu Awareness Cadre, 369 ECR ,
Melakkadu Post, Pattukottai, Thanjavur District 614 704.
386 Thiru. Alangara Kathiresan, General Secretary, Tamil Nadu Viswagarma
Handicrafters Association, Sri Visveswara Bhavanam, 76, Millers Road, Chennai
10.
387 Thiru. K. Chandrasekaran, Vice President, Tamil Nadu Jewel Workers Association,
39M, Nehru Lodge, New Building, Koolakkadai Bazar, Tirunelveli 627 006.
388 Thiru. S. Ashok, President, Micro & Small Enterprises Association of Cuddalore
District, S-14, Sidco Industrial Estate, Semmandalam, Cuddalore 607 001.
premsenengg@gmail.com
389 Thiru C. Raju, Treasurer, Salem Mandala Kumaran Visaithari Pothu Thozhilalargal
Sangam, 1/126, thangasalai, Vennandur 637 505.
390 Thiru M. Venkatachalam Achari, Chengai District President, All India
Viswakarma Peravai, 30A/22, C.N. Krishnan Street, Chengalpattu 603 002
391 Thiru V.G. Purushothaman, Tamil Nadu Farmers Association, 37, Vivekanandan
Street, Vazhkudai 604 401.Cheyyar Tk. Thiruvannamalai.
392 Thiru K. Panneer Selvam, 170 Papapatti, Chinnapampatty Main Road, Illampillai,
Salem 637 501.
393 Dr. A.K. Ravikumar, Mowthi Nursing Home (P) Ltd. Alamaram, Stop, Vadavalli,
Coimbatore 641 041 e-mail: drakrknhh@gmail.com
394 Thiru E. Velmurugan, Sri Math ;Virat Viswakarma Thozhilalargal Sangam, No.3,
Nabigal Nayagam Street, Dindivanam 604 001.
395 Thiru J. Rajamohan, Secretary, Tamil Nadu Chamber of Commerce & Industry,
178-B Kamarajar Salai, Madurai 625 009. Email. Mdu_chamber@sancharnet.in
396 Thiru N. Vaheesan, Secretary, BHEL Ancillary Association Ranipet, No.36-A,
SIDCO, BHEL Ancillary Estate, Mudundarayapuram, Ranipet 632 406, Vellore.
397 Thiru E. Irrullappan, B.E., D.L.A.L., 232, R.K.Puram By-pass Road, Srivilliputhur
626 125. Virudhunagar District.
398 Thiru S. Ashok, President, Micro & Small Enterprises Association of Cuddalore
District, S-14, SIDCO Industrial Estate, Semmandalam, Cuddalore 607 001.
Email: premsenengg@gmail.com
399 Thiru V. Chandrasekaran, Joint Managing Director, Sugavaneswara Spinning Mills
(P) Ltd., Belur Main Road, Sellaimpalayam, Minnampalli, Salem 636 106. e-
mail: sugavaneswara@yahoo.com
400 Thiru P. Sakthivel, 42, Muniappan Kovil street, Shevapet, Salem
401 Thiru S. Prakasam, 39/13. Narayanasamipuram, Rice Mill, Salem 9.
402 Thiru D.V. Subrahmanyam, Dy. General Manager (CEM), Steel Authority of India
Limited, Salem Steel Plant e-mail: genladmn@sailssp.in
403 Thiru P. Selvaraj, 124 Paper Mill Road, Pallipalayam, Erode 6.
404 Thiru K. Velmurugan, Tamil Nadu Viswakarma Samuthaya Nala Arakattalai, 5-1-
80, Meenakshi Sundaram Nadar Street, Aandipati 625 512, Thenai Dist.
405 Thiru V. Rangan Aachari, President, Vellore Dist, All India Viswakarman Peravai,
11/6, Bangaramman street, Poonga nagar, Chennai 3
406 Thiru S.P. Jeyapragasam, President, 342, East Masi Street, Madurai 625 001 e-
SL NO NAME & ADDRESS
mail: tnfood@gmail.com
407 President, Namakkal District Powerloom Weaving Association For Wages, 315/1,
Salem Main Road, Komarapalayam 638 183.
408 Thiru G. Subramaniyam, Secretary, Viswakarma Nagai Thozhilalar Sangam,
Kullapuram lane, Aandipatti, Theni 625 512.
409 Thiru P.S. Nagarajan, G1, J.V. Royal Flats, 5/7, Arangan Street,
Vijayalakshmipuram. Ambattur, Chennai 3
410 Thiru M. Subbiah, 12, Avenue Road, Sakthivelammal Nagar, SS colony, Madurai.
411 Thiru E.P. Hareendranathan, Airport Director, Airports Authority of India, Chennai
Airport, Chennai 600 027.
412 Thiru R. Baskaran, Director, Udhavum Karangal, People for Animals, 54/68,
Chukanggal Patti, Opp. To Okalikar Sangam (West street), Pudhiya Nagarachi
Salai, Kambam, Theni District



















ANNEXURE III

LIST OF THE STAKEHOLDERS WHO DEPOSED BEFORE THE COMMISSION
Public Hearing At: Chennai
Venue: Tamil Isai Sangam, Raja Annamali Mandram
Date: 30-01-2012
S.No. Name of the Speakers at Chennai Public Hearing
1 Thiru J Chandrasekharan, Managing Director, M/s.Narasimha Impex Pvt Ltd
2 Thiru Ponnambalam , Vice President Orient Green Power Co. Ltd
3 Thiru M Thooyamoorthy , Association of Transparency and Anti-Corruption
4 Thiru A Kalaivanan , General Secretary , Salem Region Kumaran Power Loom Sangam
5 Thiru P Ravindhiran , President - Pasimutthan Odai Irrigation Small Farmers Association
6 Thiru R Sivakumar, Sivasugam Consultancy
7 Thiru M Venkatakrishnan , Thiruvannamalai
8 Thiru K Ganapathy , General Secretary, Krishapuram Residence Association
9 Er. S. Gandhi, President, PESOT
10 Thiru S.V. Angappan, General Secretary, TNEB Accounts & Executive Staff Union
11 Thiru C Selvaraj , Association of Transparency and Anti-corruption
12 Thiru. G. Balasubramanian, Jumbo Pack Ltd
13 Thiru RM. Chidambaram, Thiruvanmiyur
14 Thiru Umesh Madan, President, Madras Steel Re-Rollers Association
15 Thiru J.P Peter, General Superintendent, Christian Medical College
16 Thiru V.G. Eriniyappan, Vandalur
17 Thiru Rahul Jain, VIOM Networks
18 Thiru E Balasubramanian, Thiruvottiryur: Represents Traders
S.No. Name of the Speakers at Chennai Public Hearing
19 Thiru S S Subramanian , COTTEE
20 Thiru D Mariyappan, Maraimalai Nagar
21 Thiru Vettuvalam K Manikandan, State President Tamilaga Vivasaigal Sangam
22 Thiru B. Sivagami Sundaram, Tambaram
23 Thiru V Ramarao, Nanganallur
24 Thiru D Gopalakrishnan, Madipakkam
25 Tmt B Suhasini, Thiruvottriyur
26 Thiru K. Kalyana Sundaram, TNEB Engineers Sangam
27 Thiru V. Muralidharan, Founder
28 Thiru AP Srinivas , Executive Member, Consumer Protection Forum
29 Thiru V. Venkatesan
30
Ms. Vinodhini Surendran, Association of Non-Traditional Occupation for Women
ANEW
31 Ms. G Mahalakshmi, NGO Social Worker, Saligramam
32 Thiru P Lakshmanan, Rane Brake Lining Ltd
33 Thiru T Loganathan, President, Tamil Nadu Fisherman Federation
34 Thiru B.V. Chandrashekar, Chief Electrical Distribution Engineer, Southern Railway
35 Thiru E Manikka Velu, General Secretary
36 Thiru A Nagappan, Tamil Nadu Vivasaigal Sangam
37 Thiru S Raghunath, Valasaravakkam
38 Thiru. D. Mohan, General Secretary, Triplicane Vyaparigal Sangam
39 Tmt. K. Rathai, All India Jananayaka Mather Sangam
40 Thiru KR Jeyaram, Savorit Limited
41 Thiru R.K. Narashiman
42 Thiru. P.K. Gnanasekaran
43 Thiru. K. Sugumar
44 Thiru K Thirumurugan
45 Thiru R Kumar
46 Thiru D Sundaram
47 Thiru D.S. Hanumantha Rao, EX-Member TNERC
48 Thiru A Narayanasamy , Karunguzhi Consumer Protection Council
49 Thiru R Muralidharan
50 Thiru C Thiruvettai
S.No. Name of the Speakers at Chennai Public Hearing
51 Thiru D Rajendran
52 Thiru M Ramakrishnan
53 Thiru K. Swaminathan , Secretary , Southern Indian Kraft Paper Mills Association
54 Tmt. R. Gomathi, Thiruninravur
55 Thiru T V S Mani , Mylapore
56 Ms. Kanimozhi Mathi, Angappan Naicken Street
57 Thiru K. Vijayakumar, President Farmers Association
58 Thiru Thangabatchan
59 Thiru D.R.D. Vaseekaran, President, Madras City Presidents Welfare Association
60 Ms.M. Naga Nikhitha, Citizen Consumer & Civil Action Group
61 Thiru V Sekharan, Madambakkam
62 T.R.Srinivasan
63 Thiru.M.Nithyanandham, Social Worker:
64 Thiru.S.Thangaraj
65 Thiru.A.C.Dharanipathi
66 Thiru P. Devanand, Mother Studio
67 Tmt. P.Shanthiselvam


Sl.
No.
Name & Address of people who have submitted written suggestions at
Chennai Public Hearing
1 All India BSNL Pensioners Welfare Association, 3/71, IV Street, Ragava Nagar,
Madipakkam, Chennai 600 091.
2 Association of Transparency and Anti-Corruption, No.2, Alwarnagar 1
st
Street,
Ullagaram, Chennai 600 061.
3 TANGEDCO, 144, Anna Salai, Chennai 600 002.
4 Thiru K. Mohan, State General Secretary, Tamilnadu Vanigar Sangankalin
Peramaippu, No.11, Sagar Apartments, Gopalakrishna Salai, T. Nagar, Chennai
600 017.
5 Triplicane Viyaparigal Sangam, New No.26, Old No. 47, Bharathi Salai 1
st
Street,
Royapettai, Chennai 600 014.
6 North Jagannatha Nagar Welfare Association, No.34, 1
st
Main Road, North
Jagannatha Nagar, Villiwakkam, Chennai 600 049.
7 Thiru E Shanmuga Sundaram, Revenue Department (Retd.), 13/33, Kalki Nagar
Main Road, Rajak Garden, MMDA, Arumbakkam, Chennai 600 106.
8 Tamil Nadu Vivasaigal Sangam, No.46A, V.O.C. Street, Kasturibai Nagar, West
Tambaram, Chennai 600 045.
9 Thiru A.C. Dharanipathy, Ex-President, CHQ (New Delhi), Block 6-A, MIG,
Sl.
No.
Name & Address of people who have submitted written suggestions at
Chennai Public Hearing
Central Avenue, M.K.B. Nagar, Vyasarpadi, Chennai 600 039.
10 Communist Party of India (Marxist), North Chennai District Committee, A.B.
Ninaivagam, 52, Cooks Road, Chennai 600 012.
11 Manonmamai Advertising, No.10, Thirumoorthi Street, T. Nagar, Chennai 600
017.
12 Thiru P Velayutham, President (East), Tamilaga Vivasaigal Sangam, Vellore
District.
13 Thiru KV. Palani, S/o. Thiru P Vellai, Ulavar Mandra Ammaippalar, No.60, Arani-
Polur Salai, Kalambur 606 903, Thiruvannamali District.
14 Thiru S.Sachithanantham, Tamilaga Ulavar Sangam, No.1/99, Mariamman Koil
Street, Maruchur Village, Araiyalam Post, Arani Taluk, Thiruvannamalai District.
15 Thiru V.M. Kuppan, S/o. R.Munirathinam, Vivasaigal Sanga Thalaivar, 2/217,
Bharathiyar Street, Velapadi Village and Post, Arani Taluk, Thiruvannamalai
District.
16 Citizen Consumer and Civil Action Group, 9/5, II Street, Padmanabha Nagar,
Adyar, Chennai 600 020.
17 Madras Steel Re-Rollers Association, 11F, Cross Road, Tondiarpet, Chennai 600
081.
18 Krishnapuram Residents Association, No. 1/56, Mukundan Street, Krishnapuram,
Ambattur, Chennai 600 053.
19 Thiru A.P. Srinivasan, Executive Member, Consumer Protection Forum, Chennai
600 004.
20 Thiru D Sundaram, Assistant Accounts Officer, O/o. The Superintendent Engineer,
Thermal & Hydro Project, 5
th
Floor, Western Wing, NPKRR Maaligai, 144, Anna
Salai, Chennai 600 002.
21 Association for Non-Traditional Employment for Women, 16/107, AH Block, 4
th

Street, Shanthi Colony, Anna Nagar Post Office, (in between 7
th
and 8
th
Main
Road), Chennai
22 All District Ice Producers Welfare Association, (Sea Food Process), New No.103,
Kubalamman Koil Street, Tondiarpet, Chennai 600 081.
23 Thiru Kathiresan, President, Tamil Nadu Fish Rearing Vivasaigal Nalla Sangam,
No.32, Sunnambukara Street, Orathanadu 614 625, Tanjore District.
24 Hotel Saravana Bhavan, 19, Vadapalani Andavar Koil Street, Vadapalani, Chennai
600 026.
25 Vellore District Small & Tiny Industries Association, Plot No.199, Sidco Industrial
Estate, Ranipet 632 403.
26 Organisation of Muslim Educational Institutions and Associations of Tamil Nadu,
16, B.N. Reddy Road, T.Nagar, Chennai 600 017.
27 Thiru R Ramamurthy, President, A 107, Lalbagadur Sasthri Street, Sathyamoorthy
Sl.
No.
Name & Address of people who have submitted written suggestions at
Chennai Public Hearing
Block, Jabbarkhanpet, Chennai 600 083.
28 Thiru N Mathivannan, President, East Thottam, Devathur Post, Ottanchathiram
Circle.
29 Thiru K Duraisami, Plot No.2, Lalbagadur Sasthiri Street, Sathyamoorthi Block,
Jabbarkhanpettai, Chennai 600 083.
30 Thiru K Palani, A 126/2, New No.2, Subaschandra Bose Street, Sathiyamoorthi
Block, Jafferkhanpet, Chennai 600 083.
31 Thillaiganga Nagar Welfare Association, 5A, 21
st
Street, Thillai Ganga Nagar,
Chennai 600 061.
32 Vivasaigal Poultry Farm, 114/55, Raja Mill Road, Pollachi 642 001.
33 Thiru T Sundaravadanam, Advocate, High Court of Madras, 263, Additional Law
Chambers, High Court Buildings, Chennai 600 104.
34 Thiru S Ramakrishnan, No.41/16, Jai Nagar, Pattalam, Chennai 600 012.
35 Annaithinthiya Jananayaga Mather Sangal, North Chennai District Committee,
No.4, Gandhi Nagar Quarters, Kuyapettai, Chennai 600 012.
36 Tmt. K. Rathai, 19, Senbagathammal Street, Rajeev Gandhi Nagar,
Vijayalakshmipuram, Ambattur, Chennai 600 053.
37 Thiru S Jeyasankar, No.118/122, Sami Nayakan Street, Chindadripet, Chennai
600 002.
38 Thiru D. Mariappan, No.1, Mariamman Koil Street, Kheelakaranai, Melrosapuram
Post, Kancheepuram District 603 204.
39 Thiru M Sivakumar, 60, Rajarajeswari Nagar, Madipakkam, Chennai 600 091.
40 Thiru T. Senthil Saravanan, 49/24, Shanmugarayan Street, George Town, Chennai
600 001.
41 Thiru Ch. Subash Durai, 3/73, Sagipatcha Street, Periyar Road, Palavakkam,
Chennai 600 041.
42 Thiru R Amirthakatesan, President, Vellore District Small & Tiny Industries
Association, Plot No.199, Sidco Industrial Estate, Ranipet 632 403.
Sl.
No.
Name & Address of people who have submitted written suggestions at
Chennai Public Hearing
43 Thiru B Selvarasu, (ADMK), Ex-27
th
Ward Secretary, No.325/C1, Perumal Maistri
Street, Athur 636 102, Salem District.
44 Thiru M.K.Balasubramanian, G3, Skylark Apartments, No.5, Diwan Rama Road,
Purasanalkam, Chennai 600 084.
45 Federation of Associations of Private Schools in Tamil Nadu (FAPSIT), No.6A,
P.T. Rajan Salai, 20
th
Avenue, K.K. Nagar, Chennai 600 078.
46 Thiru S Sivagnanam, No.1, North Street, Kasthurirengapuram, Samugarengapuram,
Tirunelveli 627 112.
47 SEVALAYA, (Registered Charitable Trust), 63/32, Ist Main Road, Gandhi Nagar,
Adyar, Chennai 600 020
49 Krishnapuram Residents Association, No. 1/56, Mukundan Street, Krishnapuram,
Ambattur, Chennai 600 053
50 Thiru T Loganathan, Ex-member Chennai Fishing Harbour Management
Committee, Ex-Trustee, Marmagao Port Trust, Goa residing at Old No. 18A,
Jeevarathinam Nagar, 1
st
Street, Adyar, Chennai 600 020.
51 Tamil Nadu Employees Central Council, No.27, Mosque Street, Chepauck,
Chennai 600 005.
52 Thiru D S M Jayarajan, Hon. General Secretary, Tamil Nadu Small & Tiny
Industries Association, No.10, G.S.T. Road, Guindy, Chennai 600 032.
53 Thandurai Vivasaigal Sangam, Door No.22, Thandurai Village, Poonamalli Circle,
Thiruvalluvar District.
54 M/s.Brakes India Limited, Padi, Chennai 600 050.
55 The Madras Chamber of Commerce & Industry, Karumuttu Centre, 1
st
Floor, New
No. 634, Anna Salai, Chennai 600 035.
56 Lakshmi Nagar Civic Welfare Association, C42, 6
th
Street, Lakshmi Nagar,
Nanganallur, Chennai 600 061.
57 Thiru E.P. Hareendranathan, Airport Director, Airports Authority of India, Chennai
Airport, Chennai 600 027.
58 Thiru R. Kannan, Teacher, Govt. Higher Secondary SAchool, Pollambakkam,
Sl.
No.
Name & Address of people who have submitted written suggestions at
Chennai Public Hearing
Kancheepuram Dist 603309.


Public Hearing At: Coimbatore
Venue: Corporation Kalaiarangam, R. S. Puram
Date: 02-02-2012
Sl. No. Name of Speakers at Coimbatore Public Hearing
1 Thiru. Arvind Dyro, Advocate
2 Thiru. K. Sundaram, Tamil Nadu farmers Association
3 Thiru. R.R. Balasundharam, Vice President, Indian Chamber of Commerce & Industry
4 P.R. Natarajan, Member of Parliament, Coimbatore
5 Thiru. K. Kathiravan, Secretary, Farmers Association
6 Thiru. Mahendra Ramdoss, President, Tamil Nadu Electricity Consumer Association
7 Thiru. S. Sirnivasan, Cooli Pavu & Visaithari Ootum Sangam, Tiruchenkodu
8 Thiru. D. Kumaravelu, Coimbatore
9 Thiru. R. Natesan, Cooli Pavu & Visaithari Ootum Sangam, Sooriyanpalayam
10 Thiru. M. Kandasamy, CODISSIA, Coimbatore
11 Thiru. S.R. Sekhar, Bhartiya Janatha Party, Coimbatore
12 Thiru. S. Raju, R.R. Electricals, Tirupur
13 Thiru. S. Balasundaram, Proprietor, Krishna Rubber Products, Coimbatore
14 Thiru. K. Saravanan, Accommodation Manager, Aliyar
15 Thiru.M. Krishnasamy, Marumalarchi D.M.K
16 Thiru. S. Periyasamy, Tamilaga Karumbu Vivasayigal Sangam, Coimbatore
17 Thiru. K. Chellamuthu, President, Uzhavar Uzhaipalar Katchi, Ottanchatram
18 Thiru. Balu, Kovai Gilla Vivasayigal Sangam, Coimbatore
19 Thiru. V. Venugopal, Coimbatore
20 Thiru. K. Duraisamy, Peelamedu, Coimbatore
Sl. No. Name of Speakers at Coimbatore Public Hearing
21 Thiru. Sundarananda Swamigal, Maharaja Pasumai Pannai, Coimbatore
22 Thiru. K. Jagadeesan, Ashok nagar, Coimbatore
23 Thiru. S. Ravikumar, Coimbatore
24 Thiru. K. R. Nagarajan, Thenkumarapalayam, Pollachi
25 Thiru. K. Maniraj, KOPMA Assn, Coimbatore
26 Thiru. P. Kandasamy, Genl. Secy, Vivasayigal Sangam
27 Thiru. Kumara Ravikumar, Kongu Ilaigner Peravai, Sathiamangalam
28 Dr. K. Selvaraj, Secretary Genl, The Southern India Mills Assn
29 Thiru. K. Ilangovan, Secretary, Tamil Nadu Elecy. Labour Ilakkiya Sangam, Coimbatore
30 Thiru. S. Suriyamoorthy, State General Secretary, Kongu Munetra Kazhagam, Coimbatore
31 Thiru. V. Eswaran, Coimbatore
32 Thiru. N. Arunachalam, Udumalpet
33
Thiru. Appu Chettiar, Tamil Nadu Small Powerloom Exports, Seva Sammelanam,
S.K.Nagar, Salem
34 Thiru.Sundaram, 20 Sukravarpettai, Coimbatore
35 Thiru. T. Narayanasamy, Senior Manager, OGP Limited, Tiruppur
36 Thiru.S. Nallasamy, Secretary, Tamil Nadu Farmers Association, Arachalur
37 Thiru.R. Govindarajan, General Secretary, PESOT, Coimbatore
38 S.Arumugam, CITU
39 Thiru.S. Ramasamy, President, Tamil Nadu Farmers Assn., Namakkal
40 Thiru. Purushothaman, Thamizhaga Uzhavar Sangam, Seyyaar, Tiruvannamalai
41 Thiru. T.S. Subbaiyan, Treasurer, CWFI, Coimbatore
42 Thiru. Krishnaraja, Jalagandapuram & Powerlooms Textiles Sangam
43
Thiru. S. Gunasekaran, TN Association of Entrepreneurs Rural Industries and Micro
Enterprises, Coimbatore
44 Thiru. T. Velayutham, President, TN Farmers Awareness Assn., Udumalpet
45 Thiru. C.M. Thulasimani, State Vice President, TN Farmers Assn, Erode
Sl. No. Name of Speakers at Coimbatore Public Hearing
46
Thiru. Senthil Mayilsamy, District Secretary, Kongu Nadu Munnetra, Kazhagam,
Coimbatore
47
Thiru. N. Mathivannan, President, Thamizhaga Tiny and Small Poultry Farms, Devathur,
Ottanchatram
48
Thiru. C. Palanichamy, President, Coimbatore District Textiles & Powerlooms Owners
Assn., Somanur, Coimbatore
49 Thiru. Pon. Angamuthu, Kongu llainzhgar Peravai, Annoor
50 Thiru. V. Ramamoorthy, Corporation Councilor, Coimbatore
51
Thiru. P. Dhandapani, Financial Advisor, 15, Kalyana Sundaram Street, B.R.Puram,
Peelamedu Kovai
52 Thiru. A.R. Babu, DYFI, Coimbatore
53 Thiru. A. Sundaramoorthy, TN Farmers Awareness Assn.
54 Thiru. Kongu Govindasamy, State Secretary, Kongu Vellavar
55 Thiru. S. Sugavanam, Head Legal, Indus Towers Limited, Chennai
56 Thiru. S. Kathiresan, Pasana Sabai, Sulur Taluk
57 Thiru. Pon. Chandran, PUCL, Kovai
58 Thiru. Dr.K.Thangamuthu, IMA, Tamil Nadu
59 Thiru. G.K.Nagarajan
60 Dr.R.Ramesh, Kanuvai, Kovai
61 Thiru. M.Faizal Rahman
62 Thiru. C. Murugesan, Coimbatore
63 Thiru. A.Sivanandan, Pollachi
64 Thiru. K.Thirunavukkarasu, Vice president, SISPA, Coimbatore
65 Thiru. K.Sivakumar, Pollachi
66 Thiru N. Durai, TN Farmers Awareness, Coimbatore
67 Thiru R.Easwaramoorthy, Kovai
68 Thiru. K.Paramasivam, Pollachi
69 Thiru. N.Chinnasamy, Kovai
70 Thiru. M.Velusamy, President, Bharathiya Kissan Sangam, Tirupur
71 Thiru. K.Sadaiappan, Siru Kuru Kozhi Pannai Koottamaippu, Ottanchatram
72 Thiru. G.K.Devanathan, Karur
73 Thiru. Sundararajan, District President, Kovai Maavatta Kootturavu Thozhilazhar Sangam
74 Thiru. T.Soundararaj, president, Vyaaparigal Sangam, Coimbatore
75 Thiru. V.C.Natarajan, Selvapuram
Sl. No. Name of Speakers at Coimbatore Public Hearing
76 Thiru. M.Jayabalan, Selvapuram
77
Thiru. A.V.Karuppusamy, Founder, Tamil Desa Thozhil Munaivor Kootamaippu,
Coimbatore
78 Thiru. M.Ramasamy, President, Tirupur District, Rice Mill Association, Tirupur
79 Thiru. A. Moulana, Coimbatore
80 Thiru. T.M. Subbu, Annur, Coimbatore
81 Thiru. S. Balakrishnan, Past President, Rotary CBE Galaxy, Coimbatore
82
Thiru. K.P.A. Palaniswamy, President, Salem Handloom and Powerloom Cloth
Manufacturers and Exporters Society, Salem
83 Thiru. Sundarraj, Nethaji Road, Coimbatore
84 Thiru. P. Veerasamy, TNEB Retd., 2/136 VIM Building, Sundarapuram, Coimbatore
85 Thiru. K. Anandaraj, S. Kumarapalayam, Sulthanpet
86 Thiru. K. Muthumanikkam, President, Kumarapalayam Panchayat, Coimbatore
87
Thiru. Easanatham R. Selvaraj, NAAM Karur Mavatta Seyalaalar, Desiya Vivasayigal
Vilippunarvu Iyaakkam, Karur


Sl. No

Name & Address of the people who have submitted written suggestions at
Coimbatore Public Hearing
1 R. Natesan, Secretary, Sooriyampalayam Cooli Paavu Ottum Visaithari
Nesavalargal Sangam, Sooriyampalayam 637 209, Thirusengodu Vattam,
Namakkal Dist.
2 Thiru K. Sivakumar, President, Vivasaigal Karikozhi Valarpu Pannaiyalargal
Sangam, 114/55, Raja Mill Road, Pollachi 642 001
3 Thiru B.R. Sundarasami, Secretary, Merku Thodarchimalai Abiviruthi Thitta
Thondamuthoor Neerpidippu Paguthi Vivasaigal Sangam, Thondamuthoor, Kovai
641 109.
4 Thiru S. Chandrasekar, 280A, Krishnan Veethi, Coimbatore 641 001
5 Thiru K. Azhagirinathan, Secretary, siru Visaithari Thuni Urpathiyalargal
Pathugapu Sangam, Kamarajar Nagar Colony, Salem 636014
6 R. Natesan, Secretary, Sooriyampalayam Cooli Paavu Ottum Visaithari
Nesavalargal Sangam, Sooriyampalayam 637 209, Thirusengodu Vattam,
Namakkal Dist.
7 Thiru K. Sadaiappan, Teacher (Retd.), Tamil Nadu Siru-Kuru Kozhipannaiyalargal
Kootamaipu, Periyakottai Post, Ottansathiram circle, Dindigul Dist.

8 Thiru N. Dhandapani, Asst. Secretary, Uzhavar Uzhaipalar Katchi, Arvendhar
Garden, 2/246, Rasipalayam (Post), Sulur, Kovai 641 402.
9 Thiru K. S. Kanagaraj, District Chairman, India Maanavar Sangam, Tamilnadu
Maanila Kuzhu, 57/21 Arunothaya Valagam, E.V.R. High Road, Chennai 3.
10 Thiru K. AjayKumar, Maavata Kuzhu urupinnar, 138, 2
nd
Veethi Virivu,
Gandhipuram, Kovai 12.
11 President, Coimbatore District Herbal & Tree Growers Association, S.F. No. 109,
Siva nagar, Kalapatti P.O. Coimbatore 641 048.
12 Thiru Medical K. Paramasivam, Planning Commission Chairman, Thirumathi
Neer Thekka Thitta Kuzhu, 14 Emmankhan street, Pollachi 642001.
13 Thiru R. Nagarajan, President, Coimbatore SIDCO Industrial Estate
Manufacturers Welfare Association, Plot No. 91, Sidco Industrial Estate, Industrial
Estate (P.O), Coimbatore 641 021 e-mail: cosiemwa@yahoo.in
14 Thiru B. Govindaraj, Jt. Secretary, Ramnagar Residents Welfare Association, 8,
Mayflower Apartment, 130, Vivekananda Road, Ramnagar, Coimbatore 641 009
15 Thiru B. Jaganathan, General Secretary, Federation of T.N.E.B. Pensioners
Association, 52, Minnagar, Gajamalai, Trichy 620023
16 Secretary, Tiruppur Erode Mavatta Siru Visaithariyalargal Sangam, Erode District,
Pallagoundampalayam post 638 056.
17 Thiru N. Jageer, Secretary, India Communist Party(Marxist), 138 (Old No. 330),
Gandhipuram, 2
nd
Veethi Virivu, Coimbatore 12.
18 Thiru K. Anandan, Branch Secretary, Gandhipuram, India Communist Party
(Marxist), 138, Gandhipuram, 2
nd
Veethi Virivu, Kovai 12.
19 Thiru R.T.R.N. Ravi, President, Jalakandapuram Powerloom Manufacturers &
Testing Factory Owners Association, No. 8, Sriranga Chetty Street,
Jalakandapuram Post, Mettur Circle, Salem Dist 636 501.
20 Thiru K. Thangavelu, 1 , Bharathi Nagar, Jalli Thottam, Vadavalli (PO), Kovai
41
21 Thiru M. Velusami, President, Bharathiya Kisan Sangam, Tiruppur District,
Avinasi.
22 Thiru B.R. Vasudevan, President, Salem Maanagar Visaithari Twistter & Winding
Varping siruthozil Munaivor Sangam, No.28/35, kalaignar Nagar, 6
th
Street,
Karungalpatti, Kugai, Salem 636006.
23 Thiru N.V. Damodaran, Pollution Protection Association, Guniamuthur Nagaratchi,
6/56, Kamarajar Veethi, Narasimmapuram, Guniamuthur, Kovai 8.
24 Thiru N. Guberasampath, 3C, Solipalayam Post, Avalpunthurai, Erode Taluk
638115
25 Thiru K.P. Appu Chettiar, President, Tamil Nadu Small Powerloom Export Cloth
Manufactures Seva Samealanam, S.K. Nagar, Seelanaickanpatty, Salem 636201.
26 Thiru K. Sundaram, Dist General Secretary, Thamizhaga Vivasaigal Sangam,
Kuppichipalayam, Vaiyappamalai 637 410. Namakkal Dist.
27 Thiru R.T.R.N. Ravi, Jalakantapuram Powerloom Cloth Manufacturers Society,
102/89, Manufacturers of Export Fabrics, Jalakantapuram 636 501, Salem Dt.
28 Thiru J.P. Jeyasekaran, dy. General Manager(Projects), Steel Authority of India
Limited, Salem Steel Plant, Salem 636013 e-mail: jpj@sailssp.in

29 Thiru P. Govindarajan, 136, Cinema Theatre Thottam, Trichy Road, West Palladam
641 664.
Thiru A. Natarajan, Thoppulian Thottam, Kalivelampatti (P.O), Palladam 641
662
30 Thiru M. Ranganathan, 1/169, ram Nagar colony, Pongalur 641 667
31 Thiru G. Krishnaraj, President, Jalakantapuram and Suttru Vatara Paguthigal
Visaithari Twisting & Vaarpu Thozhir Seyyum Sangam, 15/5/8, Sriranga Chetty
Street, Jalakantapuram 636 501, Salem Dist.
32 Thiru V. Ananthakrishnan, Pongalur Uratchi Ondriyam, Vvipalaiyam, Palladam
Circle.
33 Thiru Sulur Chinnasamy, The Shuttleless Loom Cloth Manufacturers Association
of Tamilnadu, 1/303, Chithambalam Pirivu, Udumalpet road, Venkittapuram Post,
Palladam 641 664, Tirupur Dist. E-mail: info@smat.co.in
34 Thiru S. Shankarapandi, 8/16, Kuttai Kadu Nagar, Annai Indira Gandhi Nagar
West, Kovai 641038.
35 District Gen. Secretary, Tamilnadu Min Amaippalargal Madhiya Sangam, 42,
Thiru.V.K. Pathai, Ammapettai, Salem 3.
36 Thiru K. Sakunthala, 144, Bharathiyar Road, P.N. Palayam, Kovai 34.
37 Thiru A. Somasundaram, President, Vennanthur Powerloom cloth Owners
Association, Vennanthur 637505.
38 Thiru K.S. Natarajan, 321, Thoppakulam Veethi-2, Kovai.
39 Thiru A. Moulana, IRF, Secretary, 180 Ramachandra Road, R.S. Puram,
Coimbatore 641 002
40 Thiru S. Balakrishnan, Past President, Rotary Coimbatore Galaxy, No.309, 5
th

street, Ext., Gandhipuram, Coimbatore 12.
41 Thiru S. Sundararajan, Coop. Sub Registrar, District President, Kovai Mavatta
Kootturavu OOzhiyar Sangam, 25, Syrian Church Cross Road, Coimbatore 641
001.
42 Thiru P. Veeraswamy, TNEB(Retd), Kurichi. (address not clear)
43 National Agriculturists Awareness Movement, No.7, Neelakanda Metha Street, T.
Nagar, Chennai 17.
44 Thiru K. Kuppuraj, TVS, Kovai
45 Thiru A. Selvaraj, 64, 6
th
Street, Ext., Gandhipuram, Coimbatore 12.
46 Sri Kannapiran Mills Limited, Post Bag No. 1, Sowripalayam, Coimbatore 641
028. e-mail : info@kannapiran.co.in
47 Mr. B. Muthuvenkatram, President, Coimbatore Jewellery Manufacturers
Association, Sai Mansion 130/L2, Swamy Iyer New Street, K.C. Thottam,
Coimbatore 1.
48 Mr. S. Kandasamy, President, Kangayam Taluk Arisi Aalai Urimaiyalargal
Sangam, Arisi Aalai Arangam, 6/33-A, Ayyasamy Nagar Colony, Main Rod,
Kangayam 638 701, Tirupur District
49 Ln. M. Ramasamy, President, Tiruppur Mavatta Arisi Alai Urimaiyalargal Sangam,
160, Chennimalai Road, Kangayam
50 Mr. K. Chandramohan, EB Contractor , Kovai District Secretary, Kovai
51 Mr. K. Eswaran, Shivabharathi Syyntex India P Ltd, Coimbatore 641 107
52 Medical K. Paramasivam, Planning Committee President, Tirumurthi Neerthekka
Thitta Kuzhu, 14, Imamkhan street, Pollachi 642 001
53 Mr. P. Kasiannan, President, Lower Bhavani Farmers Federation, No.49-V, Sakhi
Complex, Mettur Road, (Opp. Abirami Theatre), Erode 638 011
54 Thiru K.P. Velumani, Dist Secretary, Thamizhaga Vivasaigal Sangam, 375,
Palakadu Main riad, Kuniyamuthur (PO), Coimbatore 641 008.
55 Mr. K.P.A. Palaniswamy, President, Salem Handloom & Powerloom Cloth
Manufactureres & Exporters Society, Artloom House 119, Appu Chetty Street,
Shevapet, Salem 2
56 Mr. K. Thirunavukkarasu, Vicepresident, The South India Spinners Association,
Flat No. 103 A Block, 1
st
Floor, Raheja Centre, 1073 & 1074, Avinashi Road,
Coimbatore 641 018 e-mail : sispa_cbe@yahoo.co.in
57 Mr. K. Duraisamy, Chief Engineer (Retd) and Coimbatore Public
58 Mr. V.P. Elangovan, District Secretary, Tamil Nadu Vivasayikal sangam, Kovai
District Committee, 127, Anupparpalayam, Ram Nagar Post, Kovai 641 009
59 Dr. K. Thangamuthu, M.S., Legal Chairman, PPLSSS, IMA, Tamil Nadu President
Elect IMA Pollachi, I.K.G.M Hospital, Coimbatore Road, Pollachi
60 Mr. S.R. Rajagopal, President, Tamil Nadu Poultry Farmers Welfare Association,
Room No. 4, Javans Bhavan, Hosur Road, Coimbatore 641 018
61 Mr. P. Dhandapani, Loksatta Shadow MLA Singai (Whistle), 15, KKS Street, B.R.
Puram, Peelamedu Post, Coimbatore 641 004. Email :
consultdhandapani@gmail.com
62 Ms. S. Saraswathy, All India Democratic Womens Association, Coimbatore
63 Mr. M. Velusamy, (President, Bharathia Kisan Association), Tiruppur District,
Avinasi
64 Prof K. Kasthurirangaian, Chairman, Indian Wind Power Association, Door No. E,
6
th
Floor, Tower-I, Shakthi Towers, No. 766, Anna Salai, Chennai . 600 002
Email : chairmaniwpa@windpro.org
65 Mr. V.G. Purushothaman, District President, Tamilaga Vivasayigal Sangam, 37,
Vivekanandar Street, Vazhkudai & Post 604 409. Cheyyar Taluk,
Tiruvannamalai District
66 Mr. K. Kumarasamy, President, Tamil Nadu Suttless Loom Cloth Manufacturer
Association, Thingalur Road, (Near Perumal Kovil), Vijayamangalam 638 056
Erode District
67 Mr. S.R. Madhusudhanan, Secretary, Tamil Nadu Vivasayigal Sangam, Tiruppur
District Committee, 11, Jayaprakash Street, Palladam,
68 Mr. S. Arumugam, Secretary, Centre of Indian Trade Unions
Coimbatore District Committee, 161, 3
rd
Street, Ganapathy Pudur, Ganapathy Post,
Coimbatore 6411006
69 Mr. S. Chinnasamy, President, Tamil Nadu Vivasayaigal Sangam, Sengappalli
Sutru Vattara pagudhi, Uthukkuli Ondriyum, Tiruppur District
70 Mr. N.K. Shanmugam, Kooli Visaitharialargal , Kaadapalayam Sutru Vattara
Pagudhi, Sengapalli Uratchi, Uthukkulli Ondriyum
71 Mr. K.C Rathinasamy, District President, Tamilaga Vivasayigal Sangam, 487,
Perundurai Road, Erode 638 011
72 Mr. K. Sekar, Farmer ,Coimbatore 4
73 Mr. C. Velusamy, Grape Garden, Mannam Palayam, Maduthukkulam Circle,
Tiruppur District
74 Mr. S. Rajamanickam, Thundu Kattu Thottam, Pachakavundan palayam,
Mugavanu Post, Jakkarpalayam (via), Kunnoor Circle, Coimbatore District
75 Mr. V. Ramamurthy, Panchayat Secretary, Communist Party of India (Marxist),
S.S. Kulam ondriya Kuzhu, R. Venkidu Ninaivagam, Sivanandapuram, Coimbatore
641 035
76 Mr. T. Sekkilar, Circle Head-Tamil Nadu Circle Viom Networks Limited, No. 45,
Damodaran Sreet,T. Nagar, Chennai 17
77 M/s. Tower Vision India Private Limited, AMG Tower, 2B, 2
nd
Floor, No. 28,
Lawyer Jagannathan Street, Alandur, Chennai 16
78 Mr. M.K. Narayanan, ATC India Tower Corporation Pvt. Ltd.
#56, Omkar Building 2
nd
Floor, North Boag Road, T. Nagar, Chennai 600 017
79 Indus Towers Limited, ESPEE IT Park, 5 (N.P. ) Jawaharlal Nehru Road, 5
th
Floor,
Ekkaduthangal, Chennai 600 097
80 Mr. K.R. Nagarajan, South Kumarapalayam (Post), Pollachi T.K.S., Coimbatore
District
81 Mr. A.R. Babu, District Secretary, Democratic Youth Federation of India,
Coimbatore District Committee, 109, Park Street, Kattoor, Coimbatore 641 009.
82 Mr. R. Venkatraman, Chief Engineer
83 Mr. D.A. Gnanaraj, Orion House, 122.2-94 K.K. Nagar, Savariar Palayam,
Coimbatore 641 028
84

Kovai Tiruppur Mavatta Kulikku Nesavu seyyum Visaithari Urimaiyalar
Sangangalin Kuttamaippu, Somanur, Palladam, Mangalam, Avinasi, Tekkallur,
Kannampalayam, Perunallur, 63, Velampalayam, Pudupalayam, Somanur 641
668
85 Mr. M. Velusamy, President, Bharathia Kisan Sangam, Tiruppur District, Avinasi

86 Mr. C.M. Thulasimani, District Vice President, Tamil Nadu Farmers Association,
15, Karuppanna Street, Erode 1
87 Mr. T. Velayudham, Dist Chairman, Tamil Nadu Vivasaigal Vizhipunarvu
Eyakkam, 1/108, Ganapathypalayam (Post), Udumalaipettai 642 122. Tiruppur
District.
88 Mr. S. Krishnamurthy, Secretary, Communist Party of India (Marxist), Engineering
Aranga Kuzhu, Coimbatore
89 Mr. S. Nallasamy, Tamil Nadu Toddy Movement, Arachalur 638 101, Erode
90 Mr. T. Narayanaswamy, Senior Manager, M/s. Orient Green Power Limited,
Gudimangalam, Udumelpet
91 Mr. S. Sundram, Member, Nugarvor Urimai Iyakkam, Sukravarpettai, Coimbatore
92 Mr. M. Muruganandam, 33, Cheran Colony, Kovai Road, Pollachi
93 Mr. K. Ilangovan, District Joint Public Secretary, TNEB Thozhilalar Aykkia
Sangam, Kovai Electricity Distribution Circel / Perunagar Branch, 76, S.N. Das
Layout (South Kovai Railway Station Road, Tatabath, Coimbatore 641 012

94 Velantham Cottage Industries Association, Attayampatti 637 501, Salem District
95 Thiru S.L. Balasubramaniam, President, Uzhavar Uzhaipalar Katchi, Ar Uzhavan
Pannai, Chandirapuram, Kaduvetipalayam (Post), Karuthampatti, Kovai Dist.
96 Thiru Y. K. Sivagnanam, Dist. Secretary, Tamilnadu Theendamai Ozhippu
Munnani, No. 161, Ganapathy Puthur, 3
rd
Street, Ganapathy (Post), Kovai 641
006.
97 Thiru R. Kondasaminaidu, President, Uzhavar Uzhaipalar Katchi, S.S. Kulam
Vataram, Kovai Dist 641 107.
98 Thiru R. Eswaramurthy, Dist Secretary, Uzhavar Uzhaipalar Katchi, Alangiyam
(P.O), tharapuram (T.K.), Tirupur dist.
99 Thiru P. Kanthasamy, Secretary, Vivasaigal Sangam, Westgardan, Vazhakkupaarai
(Post), Othakkal Mandapam, Kovai 641 032.
100 Dr. A.K. Ravikumar, Indian Medical Association, Mowthi Nursing Home (P), Ltd.
Alamaram Stop, Vadavalli, Coimbatore 641 014
101 Siru Visaithari Thuni Urpathiyalargal Sangam, Sattaiyamputhur, Thiruchengodu
637 211. Namakkal Dist.
102 Thiru N. Ramaswamy, Chairman, The Institute of India Foundrymen, IIF G.K.D.
Hall, Vyshnav Building, Race Course, Coimbatore 641 018. e-
mail:ennar2002sscpl@sify.com
103 The Secretary, Erode Mavatta Arisi, Aalai Urimaiyalargal Sangam & Nel, Arisi
Motha Vivyabarigal Sangam, Opp. To R.R. Lodge , A.N. towers, 227, Sathi road,
Erode 638 003.
104 Thiru K.R. Nagaraj, Thenkumarapalayam (P.O), Pollachi, T.K. Coimbatore Dist.
105 Thiru Kongu Govindasami, Dist General Secretary, Kongu Velala Goundargal
Peravai, 9, K.G. Nagar, Kalangal Road, Sulur, Kovai 641 402.
106 Thiru D.A. Narayanan, Advocate, 4-B, Balaji Nivas, Near R.V. College,
Mariyapuram, Karamadai 641 104. Coimbatore District. E-mail:
advnarainsangunatham@gmail.com
107 Thiru S.R. Rajagopal, President, B.A.B. Murai Neerpasana Vivasaigal Sabai,
Goundar Mandabam, Malaiyadipalayam (PO), Palladam (T.K.) 641 669
108 Thennai Vivasaigal Sangam (address not clear)
109 India Uzhavar Uzhaipalargal Katchi, Tamizhaga Vivasaigal Sangam, Sultanpettai
Circle, Goundar madam, Sencherimalai (PO), Palldam(TK), Kovai (dt).
110 Thiru Sakthikoch Natarajan, Dist. Deputy General secretary, Kongu Munnetra
Kazhagam, No. 46, Sampath Nagar, Erode, Kongunadu, Tamilnadu 638 011. e-
mail: konguho@yahoo.in
111 Thiru S. Kathiresan, District Vivasaya Thalamai Amaipalar, Kongunadu Munettra
Kazhagam, Kumarapalayam (Post), Sultanpettai, Sulur (Taluk), Kovai Dist
641669
112 Thiru E.R. Eswaran, District General Secretary, Kongu Munnetra Kazhagam,
Kongu Munnetra Kazhagam, 46, Sampath nagar, Erode, Kongunadu, Tamil Nadu
638 011.
113 The Southern India Mills Association, Post Box No. 3783, 41 Race Course,
Coimbatore 641 018. e-mail: simacbe@gmail.com
114 Thiru R. Govindan, President, Elampillai Area Polyster Yarn and Jari Twisters and
Warpers Association, 1.1.20, Salem Main road, Ellampillai 637 502, Salem Dist
115 Thiru K. Maniraj, President, Kovai Power Driven Pumps and Spares Manufacturers
Association, 69-C, South Street No. 5, K.R. Puram, Avarampalayam, Coimbatore
641 006. e-mail: kopmacbe@gmail.com
116 Namakkal District Thirusengodu Town Circle Small Powerloom Owners Sangam.
117 Thiru R. Nagarajan, President, coimnbatore SIDCO Industrial Estate
Manufacturers Welfare Association, Plot No. 91 , Sidco Industrial Estate,
Industrial Estate (PO), Coimbatore 641 021.
118 Thiru C. Sivakumar, Secretary, Coimbatore, Tirupur District Kurunthozhil
Mattrum Ooraga Thozhil Munaivore Sangam, 19/3, Lucky Plaza, ist floor,
Sanganoor Main Road, Ganapathy Puthur, Ganapathy, Coimbatore 641 006.
119 The Secretary, Salem Seelanayaganpatti Perumal Kovil Nedu Visaithari Jewel
Urpathiyalargal Sangam, 3/75, sivasakthi Nagar, Selva Vinayagar Kovil Street,
Seelanayaganpatti, Salem 636 201.
120 Thiru J. James, President, Tamil Nadu Ooraga Thozhil Mattrum Kurunthozhil
Munaivore Sangam, 15/221, Vadavalli Road, J.J. Nagar, Edaiyarpalayam,
Coimbatore 641 025. e-mail:tactcbe.com
121 Thiru R. Soundappan, Salem Kugai Karungalpatti Visaithari Jewel urpathiyalargal
Sangam, 72/60-A, South Muniyappan Kovil Street, Karungalpatti, Salem 6.
122 Thiru B.R. Vasudevan, President, Salem Managar visaithari Twisting & Winding
Varfing siruthozhil Munaivore Sangam, 28/35, Kalaingar Nagar 6
th
Street,
Karungalpatti, Kugai, Salem 636 006.
123 Thiru Sulur Chinnasamy, The Shuttleless Loom Cloth Manufacturers Association
of Tamil Nadu. 1/303, Chithambalam Pirivu, Udumalpet Road, Venkittapuram
Post, Palladam 641 664. Tirupur Dist.
124 Thiru K. Velumani, Thamizhaga Vivasaigal Sangam, 375, Kolluvai Thottam,
Kuniyamuthur, Kovai 641 008.
125 Thiru C. Samiyappan, Murai Neerpasana Vivasaigal Sabai, L. 13, Pasana Kottam,
Mettupalayam.
126 Thiru Kongu N. Goundasami, President, Horticulture Growers Association, H-
105, Periyar Nagar, Erode 638 001.
127 Thiru Raja Perumal, Ammapettai Visaithari Thuni Urpathiyalargal Sangam,
447/152, Thiru.v.K.Salai, Ammapettai, Salem 636 003.
128 Thiru K. Jagadeesan, Assistant Executive Engineer/Operation, Sholayar Power
House II/ KGC/TNEB, 37, Sri Ragavendra Illam, ist floor, Ashok Nagar,
Vettaikaran Pudut, Pollachi, Coimbatore 642 129.
129 Thiru A.L Raja, Gen. Secretary, Kovai District Loadge, Hotel & Bakery
Thozhilalar Sangam, 1,S, Ramasami Road, R.S. Puram, Coimbatore 641 002.
130 Thiru C. Govindan, Dist General Secretary, Tamil Nadu Min Amaippalargal
Madhiya Sangam, 42, Thiru V.K. Salai, ammapettai, Salem 3.
131 Sooriyampalayam Siruvisaithari Owners Sangam, Sooriyampalayam 637 209.
Thiruchengodu Circle, Namakkal District.
132 Thiru K. Rajamanickam, President, Thathampatti Small Powerloom Cloth
Manufacturers Welfare Association, 1/86 B, Sulakara Udaiyar street,
Thathampatti, Salem 636 014.


Public Hearing At: Trichy
Venue: Barbier Hall, Jubilee Building, St. Josephs College
Date: 06-02-2012

Sl. No. Name of Speakers at Trichy Public Hearing
1
Thiru. K. A. Chinnasamy, President , Karur District, Handlooms & Spinning Protection
Association
2 Thiru. P. Iyyakannu, Vice President, Bharathiya Kisan Sangam, Musiri
3 Thiru. Durai Arulrajan, State Joint Secretary, All India Students Federation
4 Thiru Neduvai, D. Raja Durai, General Secretary, Kissan & Khat Mazdoor
5 Thiru. P. R. Pandian, Member of State Council, Tamilnadu Vivasahigal Sangam.
133 General Secretary, Insurance Corporation Employees Union, Saroj Nilayam, Old
No. 1519/1, Trichy Road, P.B. No. 3760, Coimbatore 641 018
134 Thiru S.R. Sekar, Bharathiya Janatha Party Coimbatore, site No. 86, Sri Laxmi
Nagar, Ganapathy, Coimbatore 641 006.
135 Thiru M. Kandhaswami, President, The Coimbatore District Small Industries
Association, Naidu towers, P.B. No. 3827, Huzur Road, Soimbatore 641 018. e-
mail: info@codissia.com
136 Thiru Mahendra Ramdas, President, Tamilnadu Electricity Consumers Association,
Ground Floor, PSG Tech, Software Park II, Avinashi Road, Peelamedu,
Coimbatore 641 004. e-mail: tecatn@gmail.com
137 Thiru M. Krishnan, President, The Indian Chamber of Commerce and Industry
Coimbatore, Chamber towers, 8/732, Avinashi Road, Coimbatore 641 018. e-
mail: iccicbe@airtelmail.in
138 Thiru S.D. Arvind Deyro, Advocate, 151 to 153, 3
rd
floor, advocate House, Opp.
To Corporation School, pappanayakkanpalayam (Post), Kovai 641 037.
139 Thiru K. Kalimuthu, Dist Deputy chairman, Uzhavar Uzhaipalar Katchi,
Appachigoundanpathy, Kumutipathi (Post), Othakaal Madabam, Kovai 641 032
140 Thiru P. Somasundaram, president Ondriya Ellaingar Ani, Uzhavar Uzhaipalar
Katchi, Pongalur Ondriyam, Vavipalayam, Tirupur Dist 641 671.
141 Thiru S. Saravana Kumar, 28/5F, Anna Nagar, Thondamuthur, Kovai District 641
109.
142 Thiru L. James Kennady, Joint Secretary, Minvaria Janatha Thozhilalar Sangam,
38, Iyswarya Garden IIIrd Street, Rakkiapalayam P.O., Avinashi 641 654
Sl. No. Name of Speakers at Trichy Public Hearing
6 Thiru. E. Anbazhagan
7 Thiru. M. Babuji, Deputy Chairman, Ramaraj Peravai
8 Thiru. R. Kathiresan, President, Tamilnadu Fish Farmers Welfare Association
9 Thiru. U.S. Kalimuthu, State President,Tamilnadu Consumers Unity Welfare Association
10 Thiru. R.A. Israel Jebasingh, Chief Operating Officer, Cethar Ltd
11 Thiru. T. Sangili Muthu, Kiliyur, Tamilnadu Vivasaya Sangam
12 Thiru. R. Kaliyamurthy, Secretary, Consumer Council,Thiruppanandal
13 Thiru. V. Jaganathan, General Secretary, Federation of TNEB Pensioner's Association
14
Thiru. V. Neelagandan, District Secretary, Tamilnadu Vivasahigal Sangam, Perambalur
District
15 Thiru. Manal. Paramasivam, Joint Secretary, Tamilnadu Fish Farmer Welfare Association
16
Thiru. Puliyur A. Nagarajan, State Vice-President, Former Panchayat President,
Tamilnadu Congress Committee
17 Thiru. K.S.Natarajan, ADM Supervisor ( Retd), TNEB, Trichy
18 Thiru. S. Rajendiran, Mannachanallur
19 Thiru. C. Masilamani, District Secretary, Tamilnadu Vivasaigal Sangam
20 Thiru. G.K. Muraleedharan, State President, Trichy Dist. Congress Kisan Wing, Trichy
21 Fr. Maria Francis, Sacred Heart Leprosy Centre, Kumbakonam
22
Thiru. K. Sivarajan, State Joint Secretary, Thennaga Nugharvor Padhugappu & Manitha
Urimai Kazhagam, Trichy
23 Wing Commander V.S. Kalyanaraman
24 Thiru. N. Ganesan, District Secretary, Tamilnadu Vivasayigal Sangam
25 Thiru. Arubathy Kalyanam, General Secretary, Delta Vivasahigal Sangam
26 Thiru. S. Dhanavelu, General Secretary, FEDCOT
Sl. No. Name of Speakers at Trichy Public Hearing
27 Thiru. M. P. Chinnadurai,Thoguthi Ammaippalar, Thamizhaga Vivasahigal Sangam
28 Thiru. L. Gnanaraj, President, Trichy District, Chanber of Commerce, Trichy
29
Thiru. Leo. N. S. Ramesh Achari,State Organising Secretary,All India Vishwa Karma
Peravai
30 Thiru. M. N. Sundar,State Co-Oridinator,Akila Bharathiya Grahok Panchayat
31 Thiru. N. Narayanasamy, Ex-President,Thollar Panchayat
32
Thiru. S. Jayakrishnan, Senior Divisional Electrical Engineer, Southern Railway, Trichy
Division
33 Thiru. S. Prabhu, Chamber of Commerce of Industry, Thanjavur
34 Thiru. Aeilai Siva Suriyan, Mavatta Seyalalar, Tamilnadu Vivasayigal Sangam
35
Thiru. Thirumalai. M. Rajendran, President, Varthaga Nala Sangam/ Vivashaya Sangam,
Sri Thirumalai Bankers's & Covering
36 Thiru. R. Jaganathan, Farmer, Pannal Nadu Kadu
37 Thiru. S. Pusphavanam, Secretary, Tamilnadu Consumers Protection Council
38
Thiru. P. K. C. C. Ganeshan, Honorary President, Tamilnadu Farmer Welfare Association
Regd
39 Thiru. A. H. A. Ansari , Representing OMEAT, Chennai Association
40 Thiru. P. Chinnadurai, Deputy President, Kaveri Vivasayigal Pathukappu Sangam
41 Thiru. C. Kandasamy, District Vice President, Bharathiya Janata party Agricultural Wing
42 Thiru. N. Chelladurai
43 Thiru. Ramatheerthan
44 Thiru. A. R. Rajendran
45 Thiru. Govindarajan




Sl. No. Name & Address of the people who have submitted written suggestions at
Trichy Public Hearing
1 Thiru. K. Rengarajan, Secretary,Tiruchirapalli District Chamber of Commerce,167,
Madurai Road, Tiruchirappalli 620 008.
2 Thiru. Ramasamy Chettiar,State Treasurer,Tamil Nadu Vivasayigal Katchi,63,
Vivekananda Street, Kurumbalur 621 107.
3 Thiru. A.V.R. Venkatachalapathy, 70/2, Ayilur Post, Aravachur viz.,Perambalur
Taluk, Pin 621 113.
4 Thiru. S. Aravamudhan,Sabari Mills , K.K. Nagar, (Ward No.38),LIC Colony, K.
Sathanur.
5 Thiru. Erama Theerthar,President,Federation of Farmers,Melappanaiyur Post,
Verachilai viz.,Pudukkottai Dist.
6 Thiru. P. Prahalathan,P.R.S. Mini Flour Mill, B.Mettur Post, Thuraiyur Taluk.
Tiruchy.
7 Thiru. S. Pushpavanam, Consumer Protection council Tamilnadu,2, RMS
Buildings, Thillainagar Main Road, Tiruchy. 620 018.
8 Thiru. K. P. Elambharathy, Divisional President of Congress, Vedaranyam,
Nagapattinam Dist.
9 Thiru. Ayilai Sivasooriyan, District Secretary, Tamil Nadu Vivasayigal Sangam, 2,
Periya Milagu Parai, Trichy - 1.
10 Thiru. V. Govindarajulu, Tamil Nadu Traders Federation, 3-B, Rakkins Road, Opp.
Hotel Raja Garden, Railway Jn, Trichy 620 001.
11 Thiru. S. Jayakrishnan, Divisional Railway Manager /Traction, Electrical Branch,
Southern Railway, Trichy.
12 Thiru. M.N. Sundar, State Co-ordinator, Akhil Bhartheeya Grahak Panchayath,
Tamil Nadu, Kasi 12, Venkatasamy Street, Chetpet, Chennai 31.
13 Thiru. PL.A. Chidambaram,President, Chamber of Commerce and Industry ,
Thanjavur, 2783, Park Tower, 2
nd
Floor, Syndicate bank,Uptairs, Rampart,
Thanjavur 613 001.
14 Thiru. P. Ayyakannu, State Vice President, Bharathiya Kishan Sangam,Malar Salai,
Annamalai Nagar, Tiruchy.
15 Thiru. Kannan (a) N. Ramakrishnan, Secretary, MGR Nalpany Mandram, 21,
upstairs, Royal City, Panaimangalam, NH 45, Chennai Highways Road, Tirchy 621
216.
16 Thiru. R.S. Murugan, General Secretary, Tamil Nadu Nagai Thozhilargal Madhya
Sangam, 478-A, Periyakadaiveethi, Truchy 8.
17 Thiru. M. Cheran, President, Federation of Farmers Association, Thanjavur, Nagai
and Thiruvarur Dist., Valivalam 610 207.
18 Thiru. A. Maria Francis,Director, Sacred Heart Leprosy Centre,1006, Karaikal
Road, Sakkottai 612 401, Kumbakonam R.S., TN , India.
19 Thiru. A. Jayaraman, 33, Govindammal Nagar, Seelanaickenpatty, Salem 636 201.
20 Thiru. S. Govindarajan, Consumer of Environmental Association, R.K. Palayam
Road, Mannargudi.
21 Thiru. V.K. Kumar, District Secretary, Periyar Dravidar Kazhagam,Truchy Dist.
22 Thiru. S. Mohammed Ibrahim, District Advisor, Citizens for Human Rights
Movement, 149, Keezha Pulivaardu Road, Trichy Division,Trichy Dist.
Sl. No. Name & Address of the people who have submitted written suggestions at
Trichy Public Hearing

23 Thiru. V.S. Karuppannan, Additional S.P.( Retd), General Secretary, District
Consumer Protection Association, 55, Cooperative Colony, Namakkal 637 002.
24 Thiru. K.A. Chinnasamy, President, Karur District Handloom waivers Protection
Association, 20, Chozhan Nagar 1
st
Street, Vengadu Post, Karur 639 006.
25 Thiru. K. Ramprakash, 31A, Palakkarai Road, Trichy.
26 Thiru. M. Kaliaperumal, Pothuravuthanpatti Post, Krishnarayapuram taluk, Karur
Dist.
27 Thiru. N.S. Perumal, State General Secretary, Tamil Nadu Nagai Thozhilargal
Madhya Sangam ,478-A, Periyakadaiveethi, Truchy 8.
28 Thiru. Ma.Pa. Chinnadurai, Tamilaga Vivasayigal Sangam, Anthanallur,
Manikandam Ondriyam, Allidurai, Trichy Dist 620 102.
29

Thiru. N. Ganesan, District Secretary, Thamilaga Vivasayigal
Sangam,Jadamangalam Post & Taluk, Trichy Dist.
30 Thiru. M. George, 4/9, Main Road, Sirumayankudi, Lalgudi, Truchy.
31 Thiru. C. Masilamani, District Secretary, Tamil Nadu Vivasayigal Sangam, Trichy
Dist.
32 Thiru. Puliyur Nagarajan, State Vice President, Kisan Khet Mazdoor Congress,
Shthiyamoorthy Bhavan, G.P. Road, Chennai 2.
33 Thiru. V. Neelakandan, District Secretary, Perambalur Dist, Tamil Nadu
Vivasayigal Sangam, A. Mettur Post, Veppanthattai Division, Perambalur Dist.
34 Thiru. M. Manickam, Managing Director, King Flour Unit P Ltd.,5, Sub Jail Road,
Trichy 8.
35 Thiru. V. Jagannathan, General Secretary, Federation of TNEB Pensioners
Association, 52, Min Nagar, Khaja Nagar, Trichy 23.
36 Thiru. R. Kaliamoorthy, President, Consumer Protection and Public Welfare
Association, 35/28, Melaveedi, Trichy 612 504.
37 Thiru. R. Aeron Israel Jebasingh, Chief Operating Officer, Cethar Energy Ltd.,
No.4, Dindigul Road, Trichy 1.
38 Thiru. U.S. Kalimuthu, President, Tamil Nadu Consumer Unity Welfare
Association, 158, Palakkarai Main Road, Trichy 8.
39 Thiru. R. Kathiresan, President, No.32, Sunnambukkara Street,
Orathanadu 614 625.
40 Thiru. M. Balaji, Vice President, Federation of Kamaraj Social Justice, 98,
Koorainadu, Mayiladurai 609 002.
41 Thiru. S.N. Mohanram, President, Thiruvarangam Nagar Welfare Association,
Thiruvarangam .
42 Thiru. A.K. Selvaraj, Kumar Modern Rice Mill, Manachanallur, Trichy Dist.
43 Thiru. E. Anbazhagan, Vennanthur Post, Rasipuram Taluk, Namakkal Dist.
44 Thiru. S.S. Rahamathullah, Dist. Secretary, Social Democratic Party of India,
No.4A, Aadith Complex, 2
nd
Floor, Rail Nagar Bus Stop, Trichy 620 010.
45 Dr. S. Arulraj, Thanjavur District Matric & Matric Hr. Sec. Schools Association,
20/1289, Kamarajar St, East Gate, Thanjavur 1.
46 Thiru. S. Abdul Rasheed, Secretary, The Tiruchirapalli District & Small Scale
Sl. No. Name & Address of the people who have submitted written suggestions at
Trichy Public Hearing
Industries Association, No.1, B.Block, First Floor,St. Pauls Complex, Bharathiyar
Salai, Trichy 1.
47 Dr. S. Sathikh, General Secretary, OMEIAT & Former Vice Chancellor of
University of Madras, Organisation of Muslim Educational Institutions &
Associations of TN, Anjuman Campus, 16, B.N. Reddy Road, T. Nagar, Chennai
17.
48 Thiru. N.M. Neelamegam Yadav, General Secretary, Samaj Wadi Party of Tamil
nadu, 18/24, Muthazhaga Pillai Street, Trichy 8.
49 Thiru. Leo. N.S. Ramesh Achari, State Organising Secretary, Federation of All
India Viswagarma, 3/13, Arunachala Mudaliar Street, Villupuram .


Public Hearing At: Madurai
Venue: Medical College Conference Hall, Madurai
Date: 10-02-2012
Sl. No. Name of Speakers at Madurai Public Hearing
1
Thiru. V. S. Manimaran, President, Madurai District Tiny & Small Scale Industries
Association
2
Thiru. K. Selvamraj, President, Tamil Nadu Siru Kuru Kozhi Pannaiyalargal,
Koottamaippu
3 Thiru. S. Nellaiappan
4 Thiru. S. Selvaraj, Joint Secretary, TN Consumer Protection Centre
5 Thiru. M. Balasubramanian
6 Thiru. V. S. Natarajan, District Secretary, Thangam Velli Nagai Thozhilalar Sangam
7 Thiru. M. Nagarajan, Secretary, Porkollar Sangam
8
Thiru. P. Subash Chandra Bose, Vice-President, The Tamil Nadu Foodgrains Merchants
Association
9 Thiru. S. R. Kumaraswamy Aathiyam, Aathithanar Educational institutions, Thiruchendur
10 Dr. A. Krishnamoorthy, President, Tamil Nadu Medical Council Chennai
11 Thiru. Chandran, Secretary, Bharathi Muthaiah Petchiammal Elaingar Sangam
12 Thiru. K. Anandan, Founder, Elaingar Saantror Mahasakthi, Madurai
Sl. No. Name of Speakers at Madurai Public Hearing
13 Thiru. N. Nanmaran, Ex-MLA, CPM, Madurai
14 Tmt. S. K. Ponnuthai
15 Thiru. M. Subramanian, President, Broiler Agricultural Association, Dindigul
16 Thiru. S. Perumaalsamy, Tamil Nadu Vivasaigal Sangam, Dindigul District
17
Thiru, K.S. Paramasivam, State President, Tamil Nadu Nirinai Payanpaduthuvor Sanga
Thalaivarkalin Manila Koottamaipu, Dindigul
18 Thiru. M. Rajasekar, Accounts Officer, Fenner India Ltd, Madurai
19 Thiru. M. Jeeva, Tamilnadu NGO Alliance for Empowering Panchayat Government
20
Dr. M. Chandramohan, Chairman & Prof. of Hepalogy, Tamil Nadu Doctor MGR Medical
University, Madurai
21 Tmt. S. Meenakshi, Secretary, Uzhaikkum Makkal Union
22 Thiru. A. Pillaiyar, Secy., Siru Visai Thari Urpathiyalar Sangam
23 Thiru. K. Sankaralingam, Director, Maruthuva Thuni Manufactures Association
24 Thiru. R. Ganesh Prabu (II year), Govt. Law College, Madurai
25
Thiru. M. Suresh Kumar, General Secretary, Insurance Corporation Employees Union,
Madurai
26 Thiru. M. Muthuramu, District Secretary, TN Vivasaigal Sangam
27 Dr. K. Venkatachalam, Chief Advisor, TN Spinning Mills Association, Dindigul, Madurai
28 Thiru. N. Jegadeesan, President, TN Chamber of Commerce & Industry Madurai
29 Thiru. G. Ramamoorthy, General Secretary, Consumer Rights Protection Consortium
30 Thiru. V. Lenin, Secretary TNEB Accounts Officers Association
31 Thiru. Chellakannu, District Secretary, Tamil Nadu Vivasaigal Sangam
32 Thiru. B. Raja, Advocate
33 Thiru. R. Parathasarathy
34 Thiru. M. Abiraham, Thamizhaga Vivasaigal Sangam, Thottakkalai Arasu Sara Amaippu
35 Tmt. S. Rajareega, Rasi Organic Farms
36 Thiru. L. Athimoolam, President, Tamil Nadu Vivasaigal Sangam
37 Thiru. Chinnaiah, Natham, Madurai
Sl. No. Name of Speakers at Madurai Public Hearing
38 Thiru. M. Ganesan, Ex-MC, Madurai
39 Tmt. M. Sellam, M C, Madurai
40 Thiru. Meyyappan
41 Thiru. Murugesan, Makkal Jananayaka Katchi
42 Thiru. G. Kumar, Manufacturing Manager, Madura Coats Pvt. Limited, Madurai
43 Thiru. S. Renganathan
44
Thiru. M. R. Krishnakumar, General Secretary, Madurai Vetrilai Paaku Beedi Cigarette
Merchants Association, Madurai
45 Thiru. Prakash
46 Thiru. K. Devaraj, State President, TN Vivasaigal Sangam Madurai
47
Thiru. A. R. A. S. Thanabalan, Secretary, Tuticorin Small Scale Salt Manufacture
Association, Tuticorin
48 Thiru. V. Stalin, DYFI, Madurai
49 Thiru. R. Palanivelu, Ex. Mill Workers Union, AITUC, Madurai
50 Thiru. A. Vijayamurugan, District Secretary, Tamil Nadu Vivasaigal Sangam
51 Thiru. A. Kuppusamy, CPM, Virudhunagar
52 Thiru. G. Kalimuthu, CITU
53 Thiru. Abuthul Pari, Rtd. Govt. Servant
54 Thiru. R. Pandi, DYFI Sports Club
55
Thiru. S. Suriyasekar, Manager, Project & Pubilc relation, Sri Vatsa Paper Mills Pvt.
Limited
56 Thiru. G. Ellaparaj, TN Vivasaigal Sangam
57 Thiru. S. Arunagiri, Secretary, Thirumurugan Visai Thari Paniyalar Sangam
58 Thiru. R. Subburam, Secretary, Madurai Jaihindpuram house owners Association
59
Thiru. Theni Vasanthan, Thalaivar, Tamil Nadu Murpokku Ezhuthhalar Kalaingargal
Sangam
60 Thiru. A. Gurusami
61
Thiru. P. Chinnasamy, Secretary, Tamil Nadu Electricity Power Engineers Society,
Madurai
62 Thiru. M. Muthirulan
63 Thiru. Pandiyarajan
64 Thiru. Palanisamy, Siru Visai Thari Urimaiyalar Sangam
65 Thiru. A.N. Lakshmanakumar
Sl. No. Name of Speakers at Madurai Public Hearing
66
Thiru. A. Nasir, Thalaivar, Dindigul Mavatta Ice Fruit Urpathiyalar matrum Virpanayalar
Nala Sangam
67 Thiru. R. Iyyanar
68 Thiru. S. Pandi, Vedarpuliyankulam Thenpalani Neerinai Payanpaduthuvor Sangam
69 Thiru. P. Vaithiya lingam, Chinna Pookkalin Thottakarar
70
Prof. S. Mahadevan (Rtd), Dept. of English, General Council Member, Govt. Arts
College, Melur, Madurai-20
71 Lion V. Vijaya Ragavan, Secretary, Recycling Plastic Association, Madurai
72 Thiru. R. Erullappan, Nirinai Payanpaduthuvor Sangam
73 Thiru. R. Mayadevan, General Secretary, Agrahamy Kisan Sabha, Madurai
74 Thiru. M. Nagarajan
75 Thiru. M. Subramaniam, Editor, PESOT, Madurai
76 Thiru. P. Sekar
77 Thiru. Suba. Loganathan
78 Thiru. P. Thirumalaiappan
79 Thiru. A.K. Meenakshi Sundaram
80 Thiru. S. Sivasubramanian, Siva Electrical Engineering Works, Madurai
81 Thiru. K. Thilakar, (CPM)
82 Thiru. T. Kumaravel, (Alu. Metal)
83 Thiru. K. Karthik, (DYFI)
84 Thiru. M. Alagappan
85 Thiru. Theekathir Narayanan, Mootha Pathirikaiyalar

Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing
1 Thiru S. Selvaraj, Tamil Nadu Consumer Protection Centre, 15, Shanthi Nagar,
Mullai Nagar, L.I.C. Colony , Madurai 625 018.
2 Thiru E. Subbammal, President, Kasthurirengapuram Panchayat, Ponnathi,
Kasthurirengapuram 627 112. Tirunelveli Dist.
3 President, Ramanathapuram Town Goldsmith Workers Association, 4K, Ganapathy
Complex, Vandikara Pillaiyarkovil Street, Ramanathapuram.
4 Thiru S. Nellaiappan, Kasthurirengapuram 627112.
5 The Energy Manager, Amaravathi Sri Venkatesa Paper Mills Limited, Palani Road,
Madathukulam 624 113. Tiruppur Dist. E-mail: m_accs@asvpm.com
6 Thiru R. Rasagopal, Gen. Secretary, Madurai District Labour Association, 19,
Bharathiyar Road, Melaponnagram, Madurai 625 016
Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing

7 Thiru M. Nagarajan, 2/5-B, Muthiah Chettiyar Lane, Raja Mill Road, Madurai 1.
8 Thiru S. Subbiah, Gen. Secretary, Madurai District Kattida Thozhilalargal Sangam,
19, Bharathiyar Road, Melaponnagram, Madurai 625 016.
9 Thiru V. Srinivasan, Gen Secretary, Madurai Certified Gold Smiths Association, 8,
Eluthanikara Street, Madurai 625 001.
10 Dr. R. Vetrivelmurugan, Madurai Association of All Special Schools, No. 79,
Pasupathi Nagar, Thapal Thanthi Nagar, Main road, Madurai 625 017.
11 Thiru K. Ganesan, Madurai 11.
12 Thiru K. Thilagar(Ex-MC), 7C, Tagoor Nagar, 2
nd
Street, Sellur, Madurai.
13 Thiru R. Vasudevan, Gen. Secretary, Government Transport Madurai Labour
Sangam, V.P. Sindhan Ninaivagam, V.O.C. 2
nd
Street, Arul nagar, Bye-pass Road,
Madurai 625 016.
14 Thiru P. Selvaraj, Melaponnagar, Gnaolivupuram, Madurai 16.
15 Thiru T. Kumaravel, 22, Tagoor Nagar, Sellur, Madurai.
16 Thiru V. Premkumar, Advocate, 63, Besant Road, Chokkikulam, Madurai 2.
17 Thiru G. Kumar, Manufacturing Manager, Madura Coats Pvt Ltd., Madurai
18 Thiru A. Murugesan, Secretary, Madurai.
19 Thiru M. Jeeva, State Organiser, Tamil Nadu NGO Alliance for Empowering
Panchayat Government, SIRD, 11, Kamala II street, Chinnachokkikulam, Madurai
625 002. e-mail: sirumdu@gmail.com
20 Thiru K. Murugesan, President, Mooligai payir Saagupadiyar Sangam,
Pungampadi, Kovilur Post, Vedasanthur T.K., Dindigal Dist.
21 Thiru S. Perumalsamy, Dist. Secretary, Tamil Nadu Agriculturists Sangam,
Dindigul Dist.
22 Tmy. T. Bhoomadevi, Secretary, Vadipatti Vatara Ammaipusara Thozhilalar
Union, SSAA Thondu Niruvana Aluvalagam, Vaigai Puthupalam, Thiruvedagam
(Post), Vadipatti Taluk, Madurai Dist.
23 Thiru G. Ramamurthy, Gen. Secretary, Nugarvore Urimai Pathukappu Peravai,
Madurai.
24 Thiru S. Meenatchi, Secretary, Uzhaikum Makkal Union, Kokkudaiyanpatti,
Usilampatti (P.O.) 625 532, Madurai Dist.
25 President, Aruppukottai Siru Visaithari Thuni Urpathiyalar Sangam, 25-C,
Chidambararajapuram street, Thirunagaram, Aruppukottai 626 101. Viruthunagar
district.
26 Thiru J. Daclos, Ayyanar Kovil 1
st
Street, Aruldaspuram, Madurai 18.
27 Thiru P. Ponnpadi, 222-6-4, S.V.T. Nagar, Madurai 7.
28 Thiru P.L. Sivasankaranarayanan, President, Master Waivers Association, 4,
Vadakasiamman Kovil , 1
st
street, Sankarankovil 627 756. Tirunelveli Dist.
29

Madurai Coffee-Tea Merchant Sangam, 124, North Masi Street, 1
st
floor, Opp. To
Arulmigu Ujjini Maakali Amman Thirukovil, Madurai 625001.
30 Thiru K. Manavalan, President, South Indian Consumer & Human Rights
Protection Council, 155/1, North Veli Street, Simmakkal, Madurai 1. e-mail:
southindianconsumer@gmail.com
Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing

31 Tmy. R. Sasikala, Secretary, All India Democratic Women Association, Nadu
Street, Mathichiam, Madurai 20.
32 Thiru T. Ramesh, President, Plastic Manufacturers Assocation, D-81, Krishna
Road, TVS Road, Madurai 625 003. e-mail: plasmamdu@gmail.com
33 Thiru V. Balasubramanian, President, Tamil Nadu Electricity Board, Finance and
Accounts Officers Association, 144, Electricity Avenue, Anna Salai, Chennai
600 002.
34 Thiru K.M. Ayyanar, D.G.M. (Electrical), L.S. Mills Limited, P.B. No. 12,
Madurai Road, Theni 625 531. e-mail: info@lsmills.com
35 Thiru T. Sivamurugan, Electrical Engineer, Theni Guru Krishna Textile Mills (P)
Ltd., 207-B, Bye-pass Road, Unjampatty Village, Theni 625 531. e-mail:
power@atktextiles.com
36 Thiru T. Chellakannu, Dist Secretary, Tamil Nadu Vivasaigal Sangam, Madurai
District Commission, 27F, Sarvodaya Salai, Magapoopalayam, Madurai 16.
37 Thiru A. Pichaimani, Secretary, Communist Party of India (Marxist), 8, Mittai
Lane, New Ramanathapuram road, Madurai 625 009.
38 Thiru P. Raja, Advocate, Ellaingar Congress Prethinithi, Manalmedu Kalaikan
Kudi (PO), Manamadurai Constitution, Sivagangai District.
39 Thiru M. Sanjeevi, President, Madaputam Kanmai Neerinai Payanpaduvor
Sangam, Madapuram, Thirupuvanam 630611. Sivagangai dist.
40 Thiru Azha. Chidambaram, Chairman, Government Consumer Representative,
Thangappal Alagarsamy Lakshimiammal Social werlfare Consumer Awareness
Centre, 4, Muniandi Kovil street, Vaithyanathapuram, Madurai 625010. e-mail:
TALSWCAC@in.com
41 Thiru K. Azhagu, President, Tamil Nadu Agriculturists Sangam, Semmampatti, S.
Puthut Ondriyam, Ulagampatti (PO) 630410. Sivagangai Dist.
42 Thiru M.R. Krishna kumar, Gen. Secretary, Madurai Betel Nut Beedi Cigarette
Merchants Association, 58-59, Manjanakara Muthiah Pillai Street, 58-59, Madurai
625 001.
43 Thiru K. Balakrishnan, Communist Party of India (Marxist), Madurai Managar
District Commission, Madurai 625016
44 Thiru R. Jeyaraman,Gen. Secretary, Indian Society for Cultural Co-operation and
Friendship, Madurai District council. 34, V.O.V. 2
nd
Main Street, P.P. Chavadi,
Madurai 625 016.
45 Thiru R. Murugan, Secretary, All India Thozhirsanga Congress, Madurai Dist.
Commission, 29, Ponnagram, Broadway, 2
nd
Cross Street, Madurai 625 016.
46 Thiru M. Saravanan, Communist Party of India, 11-A, Melaperumal Mesthiri
street, Madurai 625 001.
47 Thiru P. Rajalakshmi, Dist Secretary, Indian Madar Thesiya Samounam, Madurai
Dist Commission, 11-A, Melaperumal Mesthiri street, Madurai 625 001.
48 Thiru V. Kottaisamy, Burma Colony,Madurai 18.
49 Thiru T. Kumaravel, 22, Tagoor Nagar, Sellur, Madurai 2.
50 Thiru U.S. Ulagappa, Tamil Nadu Agriculturists Sangam, Thirumangalam Circle
Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing
Kuzhu, Madurai Dist.
51 Thiru K. Thilagar, Sellur, Tagoor Nagar, Madurai 2.
52 Thiru Jeyapal, President, Association of Private Schools Correspondents, Madurai.
53 The General Secretary, Tamil Nadu Visvakarma Ellaignar peravai, 11-B,
Pacharichikara Street, South Masi Street, Madurai 625 001.
54 The Secretary, Madurai Mavata Paarampariya Porkollar Sangam, 11-B,
Pacharichikara Street, South Masi Street, Madurai 1.
55 DRM(TrD)/MDU, Southern Railway, Divisional Railway Managers Office,
Traction Distribution Branch, Madurai 625016.
56 Thiru J. Narasimman, Secretary, Sellur-Anna Nagar, Madurai.
57 Thiru M. Chandiramohan, Professor & President, Kamarajar jaundice & Liver
Hospital & Research Centre 36, Chithirakara street, Madurai 1.
58 Thiru V. S. Manimarian, President, Madurai District Tiny & Small Scale Industries
Association, 1A-4A, Dr. Ambedkar Road, Madurai 625 020. e-
mail:info@maditssia.com
59 Thiru K. Selvarasu, President, TamilNadu Small-Tiny Poultry Association,
Semmadaipatti, Palakanuth (Post), Aathur Circle, Dindigul District.
60 Thiru C. Muthuraman, Hon. Secretary, Kappalur Industrial Estate Manufacturers
Association, plot No. 153, SIDCO Industrial Estate, Kappalur, Madurai 625 008.
e-mail:kiema_mdu@gmail.com
61 Thiru M. Kanthiah, 108/208 H.M.S. Residential, Theni National Highway, Madurai
625 016.
62 The Disctrict Secretary, Democratic Youth Federation of India, 10-A, Hanumar
Kovil Padithurai, Simmakal, Madurai 625 001.
63 Thiru M. Balasubramaniam, Secretary, 75, Kaliamman Kovil Street, pasumpon
Nagar, Madurai 3.
64 The Secretary, Sakkimangalam Ellampallam Vaikaal Pasana Vivasaigal Sangam,
Madurai North Circle.
65 Thiru M. Puthisigamani, President, Periyar Prathanakalvai Erupoga Sagupadi
Neerinai Payanpaduthupavor Sangam, Karupayurani, Madurai dist.
66 Thiru M. Kalyanasundaram, Secretary, Madurai Dist 38
th
Ward Public Nalaurimai
Sangam, 31, South Masi Street, Madurai 625 001.
67 Thiru P.S. Sivaprasad, President, Madurai Spinners Association, Meenakshi illam,
21, Vinayaga Nagar, K.K. Nagar, Madurai 625 020. e-mail:
msamdu@airtelmail.in
68 Thiru A. Madasamy, Secretary, Sankarankovil Circle Power Loom Battery Lobours
Association, Thiruvallur Salai, Sankarankovil 627756.
69 Thiru S. Udhyakumar, Secretary, Tamilnadu Readymade & Textile Dealers
Association, 1-D, Kamarajar Salai, Vilakkuthoon, Madurai 625 009.
70 Thiru K. Vasanthavel, President. The Madurai District Rice Mill Owners
Association, Plot No. 217, Arignar Annanagar, Madurai 625 020.
71 Thiru K. Anandan, Adminstrator, Illaignar Sandrore Magasakthi, 72/9,
Thanappamuthali Street, Madurai 625 001.
72 The Secretary, Asaripallam perumal Nagar Residents General Welfare Association,
Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing
1-1-4-7-1/3, Sanalkarai Road, Perumal Nagar, Asaripallam 629 201.
73 Thiru N. Karuppiah, 123, Kambar Street, Nehru Nagar, Near TNSTC HQ, Madurai
625 010.
74 Thiru A. Palani, President, Vaigai Appala Thozhilalargal Union, 4, Angayarkanni
Nagar, 5
th
Cross Street, Jai Hindpuram, Madurai 625 011.
75 Tamil Maanila Vivasaya Ani, 268, Netaji Street, N.G.O. Colony, Nagamalai,
Madurai 625 019.
76 Thiru S. Wilson Jeyaraj, Tamil Nadu Residential Board, Flat No. 7, A.I.T.U.C.
Nagar, Achampathu, Madurai 625 019.
77 Thiru G. Samueal, Manager, Tamilnad Kidney Research Foundation, 17,
Wheatcrofts Road, Nungambakkam, Chennai 34. e-
mail:tankerfoundation@tankerfoundation.com
78 Thiru A. Sekar, District Secretary, communist Party of India (Marxist), M.R.C.
Ninaivagam, 67, 131/1F, Kacheri Salai, Thyagi Sankaralinganar Nagar,
Viruthunagar 626 001.
79 Thiru S. Gunasekaran, Gen Secretary, Madurai Maanagar Sumaipani Thozhilalar
Sangam, 19, Bharathiyar road, Melaponnagram, Madurai 625 016.
80 Thiru S. Santhiyagu, Gen. Secretary, Madurai Tailoring Labour Sangam, 19,
Bharathiyar road, Melaponnagram, Madurai 625 016.
81 Thiru S. Santhiyagu, Gen Secretary, Madurai Nagar Salaiyoram and Market
Virpanaiyalar Sangam, 19, Bharathiyar road, Melaponnagram, Madurai 625 016.
82 Communist Party of India (Marxist), 6/19, Bharathiyar Road, Madurai 625 016.
83 Thiru G. Ramakrishnan, Agila India Visvakarma Peravai, Theni.
84 Thiru M. Muthuramu, district Secretary, Tamil Nadu Agriculturists Sangam,
Vandikara Street, Opp. To Vattatchiyar Office, Ramanathapuram 625 501.
85 Thiru A. Sheik Hussai, Secretary, Viswanathapuram Residential Welfare
Association, 9-8-31, Agasthiyar Street, Viswanathapuram Virivakkam, Madurai
625 014.
86 Thiru L. Adhimulam, Dist President, Tamil Nadu Agriculturists Sangam, 35,
Sathyamurthy Street, Sivagangai 630 561.
87 Thiru R. Sampurnam, 45/4, Nagammnayakanpatti colony, Seelanayakanpatti Post
652 653. Elumalai, Peraiyur Taluk, Usilampatti, Madurai Dist.
88 Thiru R. Mohankumar, President, Vasimalyan Vivasaigal Welfare Association,
45/4A, Nagamanayakanpatti Colony, Seelanayakanpatti Post, Elumalai, Peraiyur
Taluk, Usilampatti, Madurai Dist. 652 653.
89 Thiru R. Theivaraj, Dist President, Centre of Indian Trade Unions, Madurai Urban
District Committee, 19, Bharathiyar Road, Melaponnagram, Madurai 16.
90 Thiru A. Vijayamurugan, Dist. Secretary, Tamil Nadu Agriculturists Sangam, 67,
131/1F, Kacheri Road, M.R.V. Memorial, Thyagi Sankaralinganar Nagar,
Viruthunagar 626 001.
91 Dindigul District Ice Producers Association, 27, East Market Road, Nagal Nagar,
Dindigul 624 003.
92 Thiru Gnanaguru, President, Moondru Oor Saaliyar Magajana Sangam, Sathirapatti
626 102. Rajapalayam Circle, Viruthunagar District.
Sl. No. Name & Address of the Person who have submitted Written Suggestions at
Madurai Public Hearing
93 President, Sri Jeyamariamman Educational and charitable Trust, 175/5, Middle
Street, East, Chatrapatti 626 102. (via) Rajapalayam, Virudhunagar Dist.
94 Thiru M. Gurupackiam, Secretary, Chtrapatti Job Works Greycloth Small
Powerloom Association, (via) Rajapalayam, Chatrapatti 626 102.








ABSTRACT

Reorganization of the Tamil Nadu Electricity Board as per the provisions of the
Electricity Act 2003 Tamil Nadu Electricity (Reorganization and

Reforms)Transfer Scheme 2010 Approved - Orders ssued.

Energy (B2) Department

G.O.(Ms).No.100 Dated:19.10.2010

goo_o! _m_ 204J _mJ 02

Read:

1. G.O.Ms.No.114, Energy (B2) Department, dated 8.10.08.

2. From the Principal Secretary/Chairman, Tamil Nadu Electricity
Board, D.O. Letter No.SE/ PLG/ EE/ GP/ AEE4/ F-
Restructuring/ D 208/10, dated 29.5.10)
***********

ORDER:

The Notification appended to this order will be published in the Tamil Nadu

Government Gazette Extraordinary, dated the Nineteenth day of October 2010.



(By order of the Governor)


P.W.C. Davidar,

PrincipaI Secretary to Government.


TO

The Works Manager, Government Central Press, Chennai-79
(With a request to publish the Notification in the Tamil Nadu Government Gazette
Extra ordinary, dated 19.10.2010)
The Chairman, Tamil Nadu Electricity Board, Chennai-2
The Secretary, Tamil Nadu Electricity Board, Chennai-2
The Secretary, Tamil Nadu Electricity Regulatory
Commission, Chennai-8.
Copy to:-
The Ministry of Power,
Government of ndia, New Delhi-1.
/s
The Chief Minister's Office, Chennai-9

The Senior P.A.to Minister (Electricity), Chennai-9.
(P.T.O)
// 2 //


The Finance (PW-) Department, Chennai-9.

The Law Department, Chennai-9
Tamil Nadu Government Website www.tn.gov.in
SF/SC




//Forwarded By Order//


SECTION OFFICER.

NOTIFICATION


n exercise of the powers conferred by sections 131 and 133 of the

Electricity Act, 2003 (Central Act 36 of 2003), the Governor of Tamil Nadu hereby
makes the following Scheme for the purpose of transfer and vesting of property,
interest in property, rights, and liabilities of the Tamil Nadu Electricity Board in the

State Government and re-vesting thereof by the State Government in corporate
entities and also for the transfer of Personnel of the Tamil Nadu Electricity Board
to corporate entities and for determining the terms and conditions on which such
transfer and vesting shall be made:-


1. Short titIe, extent and commencement:- (1)This Scheme may be
called the Tamil Nadu Electricity (Reorganisation and Reforms) Transfer

Scheme, 2010.

(2) t extends to the whole of the State and also to properties, interests,
rights, liabilities, proceedings and personnel of the Board outside the
State.

(3) t shall come into force on and from the First day of November 2010.


2. Definitions: - n this Scheme, unless the context otherwise requires,-

(a) "Act" means the Electricity Act, 2003. (Central Act 36 of 2003);

(b) "Board" means the Tamil Nadu Electricity Board constituted under
section 5 of the Electricity (Supply) Act, 1948 (Central Act 54 of 1948);
(c) "Company" or Corporation means the company incorporated as a
fully owned Government Company under the Companies Act 1956
(Central Act 1 of 1956);
(d) "Commission" means the Tamil Nadu Electricity Regulatory

Commission (TNERC) established under section 17 of the Electricity

Regulatory Commissions Act, 1998 (Central Act 14 of 1998) and
constituted under section 82 of the Electricity Act,2003 (Central Act 36
of 2003);

(e) "LiabiIities" include all liabilities, debts, duties, obligations and other
outstandings including statutory liabilities and Government levies of
whatever nature and contingent liabilities which may arise in regard to
the dealings before the date of the transfer in respect of the

Undertakings transferred under this Scheme;


Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 1
(I) "PersonneI" means staff, workmen, employees, officers and
managers of the Board by whatever name called and includes
trainees, if any, for the recruitment in the Board and those on
deputation from the Board to other organizations or institutions. t
includes persons ordered to be permanently absorbed but yet to be
absorbed in the Board;

(g) "Proceeding" means the proceeding of whatever nature including
suits, appeals, complaints, petitions, applications, conciliatory,
arbitration, whether civil or criminal or otherwise;

(h) "Property" means all assets including power systems, dams, tunnels,
intake and outlet structures of water conductor systems, generating
stations with associated plant, machinery, equipment, transmission
towers, lines, transformers, breakers, land, building, offices, stores,
installations, furniture, fixtures, vehicles, residential quarters and guest
houses and amenities and installations pertaining thereto and other
movable and immovable assets, cash in hand, cash at bank,
investments, book debts- corporeal and incorporeal, tangible and
intangible assets, benefits, consents, authorities, registrations, patents,
trademarks and powers of every kind, nature and description
whatsoever, privileges, liberties, easements, advantages, approvals,
contracts, deeds, schemes, bonds, agreements and other instruments
and interest of whatever nature and wherever situate;

(i) "ScheduIe" means Schedules appended to this Scheme;

(j) "State" means the State of Tamil Nadu;

(k) "State Government" means the Government of Tamil Nadu;

(l) "TamiI Nadu Generation and Distribution Corporation Limited",
means a Company to which the Generation and Distribution
Undertakings of the Board are to be transferred in accordance with this
Scheme;

(m) TamiI Nadu Transmission Corporation Limited", means a
company to which the Transmission Undertakings of the Board are to
be transferred in accordance with this Scheme;

(n) "TerminaI Benefits" means the gratuity, pension, dearness and other
applicable allowances, medical benefit, and other applicable benefits
including the right to have the appropriate revisions in the above
benefits consistent with the practice that were prevalent in the Board;

(o) "TNEB Limited" means the Company that will own all shares of

reorganised two Companies (i.e.) Tamil Nadu Generation and


Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 2
Distribution Corporation Limited and Tamil Nadu Transmission

Corporation Limited;

(p) "Transferee" means the Tamil Nadu Generation and Distribution

Corporation Limited, Tamil Nadu Transmission Corporation Limited or

TNEB Limited, as the case may be, in whom the functions and

Undertakings of the Board are vested in terms of the provisions of the
Act and this Scheme;
(q) "Tripartite Agreement" means the Agreement entered into by the
State Government, the Board and the Union or Association of the
Personnel concerned and as may be modified by the parties to the
said Agreement, from time to time;
(r) "Undertaking" means the business and block or blocks of properties,
interest, rights, liabilities, obligations, proceedings and personnel to the
extent and in the manner specified as a part of the Undertakings and
such other properties, interest, rights, liabilities, obligations and
proceedings and wherever the context so admits shall include the
personnel as specified in this Scheme relevant to the functions;

(s) The words and expressions used in this Scheme and defined in the Act
and the rules and regulations made thereunder, but not specifically
defined in this Scheme shall have the meanings, respectively as
assigned to them in the Act and the rules and regulations made
thereunder.

3. CIassification of Undertakings of the Board:- (1)The Undertakings
of the Board, are classified in the following Schedules:-

(a) Generation and Distribution Undertakings as set out in ScheduIe-A

(b) Transmission Undertakings as set out in ScheduIe - B, and

(c) Holding Undertaking as set out in ScheduIe - C;

(2) f the assets of the Undertaking under sub-clause (1) are subject to any
security documents or arrangements in favour of third parties for any
financial assistance or obligation taken by the Board and the liabilities
in respect thereof have been classified in different Undertakings, the
State Government, may by order, to be issued for the purpose, provide
for the apportionment of the liabilities secured by such properties,
assets and rights between the different Undertakings and upon such
apportionment, the security shall stand apportioned to the
Undertakings to the extent of the apportioned liabilities only.


Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 3

4. Transfer of property to the State:- (1) On and from the First day of
November 2010 the properties, interests in property, rights and liabilities
which before the said date belonged to the Board as specified in

Schedules A,B and C shall stand transferred to and vest in the State

Government for the purposes of further transfers under this Scheme.

(2) Nothing in sub-clause (1) shall apply to rights, responsibilities, liabilities
and obligations in respect of the personnel and personnel related
matters including-the statutory dues such as salary, wages, gratuity,
pension, provident fund, compensation, terminal and retirement benefits
and the same shall be dealt in the manner provided in clause 6 of this

Scheme.


5. Transfer of Undertaking by the State:- (1) The Undertakings

forming part of Generation & Distribution Undertakings as set out in
Schedule - A together with all assets and liabilities vested in the State

Government shall stand transferred to and re-vested by the State

Government in the Tamil Nadu Generation and Distribution Corporation
Limited (hereinafter referred to as TANGEDCO) on and from the First
day of November 2010 subject to terms and conditions, of the provisions
of the Act and this Scheme.

(2) The Undertakings forming part of Transmission Undertakings as set out
in Schedule - B together with all assets and liabilities vested in the State
Government shall stand transferred to and re-vested by the State
Government in the Tamil Nadu Transmission Corporation Limited
(hereinafter referred to as TANTRANSCO) on and from the First day of
November 2010 subject to terms and conditions, of the provisions of the
Act and this Scheme.

(3) The Undertakings forming part of Holding Undertakings as set out in
Schedule C together with all assets and liabilities till further orders of the

State Government shall stand transferred to and re- vested by the State

Government in the TNEB Limited on and from the First day of
November 2010 subject to terms and conditions, of the provisions of the

Act and this Scheme.

(4) On such transfer and re-vesting of the Undertakings in terms of sub-
clauses (1) to (3) and except as otherwise provided, the respective
Transferee, shall be responsible for all functions, contracts, rights,
deeds, schemes, bonds, agreements and other instruments of whatever
nature relating to the respective Undertakings transferred to it to which

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 4
the Board was a party, subsisting or having effect on the date of the
transfer, in the same manner as the Board was liable immediately before
the date of the transfer, and the same shall be in force and effective
against or in favour of the respective Transferee and may be enforced
effectively as if the respective Transferee had been a party thereto
instead of the Board.

(5) As consideration for the transfer and re-vesting of the Undertakings
transferred as specified in this Scheme, TANGEDCO and
TANTRANSCO shall have the financial and opening balance sheet and
shall issue shares and instruments in favour of TNEB Limited, as the
State Government may notify by order (as specified in Part- of

Schedules A and B to this Scheme).

(6) As consideration for the transfer and vesting of the Undertakings
transferred as specified in this Scheme, TNEB Limited shall have the
financial and opening balance sheet and shall issue shares and
instruments in favour of the State Government, as the State Government
may notify by order (as specified in Part- of Schedule C to this

Scheme).

(7) The transfer and re-vesting of the Undertakings in the Transferees in
terms of this Scheme shall take effect immediately on the First day of
November 2010 for the purpose notwithstanding that the value of such
Undertaking transferred have not been finally determined but have been
determined only on provisional basis and is subject to updating,
finalization and adjustments at a later date or in terms of clause 11. The
Transferee shall continue to function as an agent of the Board till further
orders of the State Government.

(8) The State Government may, by an order, to be issued for the purpose
amend, vary, modify, add, delete or otherwise change the terms and
conditions specified in the Schedules at any time during the provisional
period mentioned in clause 9 of this Scheme.

(9) The transfer value of the Fixed Assets forming part of Schedules A, B
and C of the respective Transferees have been done at book values
excluding the land which was revalued based on the guideline value
resulting into Revaluation Reserve of Rs. 6868.70 Crores adjusted
against the accumulated loss of the Board. However, within the
provisional period specified in clause 9 of this Scheme, the final transfer
value of the Fixed Assets shall be determined keeping in view the
revenue potential of such assets as per section 131 of the Act and shall
be determined and effected as if done before the First day of November

2010.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 5

6. Transfer of PersonneI:- (1)The transfer of personnel shall be subject to
the provisions contained in section 133 of the Act and the Tripartite
Agreement.
(2) All personnel of the Board (excluding Chairman and Director of the

Board) shall stand transferred to and absorbed in TANGEDCO on a
provisional basis, subject to finalisation of Employee Transfer scheme by
the State Government in consultation with the Chairman of TNEB
Limited.

(3) The Chairman and Director of the Board shall stand transferred to and
absorbed as per the directions of the State Government.
(4) A Tripartite Agreement shall be signed between Government of Tamil

Nadu, Transferee and the Recognised Unions / Associations to set forth
the conditions mutually agreed upon to safeguard the interest of the

Personnel and for smooth implementation of the policy of restructuring.

(5) On the date of transfer under clause 5 of this Scheme, the personnel of
the Board shall stand assigned to the services of the relevant
Transferee, on deputation basis, on as-is-where-is basis, namely, that
they will continue to serve in the place where they are posted on the
date of transfer, till further orders of the State Government in
consultation with the Chairman of TNEB Ltd.

(6) On the date of transfer under clause 5, of this Scheme the personnel of
the Board rendering services to more than one Undertaking or otherwise
the services of personnel of common nature shall continue to render
such services in the same manner as before till further orders of the
State Government in consultation with the Chairman of TNEB Limited.

(7) The head of Personnel Department of TANGEDCO may issue orders
from time to time directing the personnel rendering services relating to
an Undertaking or Undertakings to be assigned to the services of
another Transferee Undertaking, as the head of Personnel Department
of TANGEDCO may, from time to time, consider appropriate during the
provisional period specified in sub-clause (1) of clause (9) of this
Scheme.

(8) The assignment of personnel under and in accordance with sub-clauses

(2) and (5) above to the Transferees shall continue till the personnel are
transferred to and permanently absorbed in the services of a Transferee,
in accordance with the provisions of the Act, this Scheme and orders to
be issued by the State Government in consultation with the Chairman of
TNEB Limited.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 6
(9) The State Government in consultation with the Chairman of TNEB
Limited, will finalize the transfer to and permanent absorption of the
personnel in a Transferee taking into account the suitability, ability and
experience of the personnel, number and nature of the vacancies and
other relevant factors and issue appropriate orders for such permanent
absorption within the provisional period of transfer of the Undertakings
specified in clause 9 of this Scheme.

(10) The Chairman of TNEB Limited shall, in consultation with TANGEDCO
and TANTRANSCO constitute Grievance Handling Committees
separately for officers(Class- and ) and other employees(Class
and V) to

(a) receive representations from the Personnel who may raise
grievances in regard to their transfer and absorption in a

Transferee; and

(b) to make recommendation on such transfer and absorption, within
such time as the State Government may specify for the purpose.
The said Committees will be formed at TNEB Limited with senior
officers and representatives from TANTRANSCO and TANGEDCO.
(11) The State Government in consultation with the Chairman of TNEB

Limited shall take a decision on the transfer and permanent absorption
of the personnel in a Transferee and shall issue orders based on the
recommendation of the Grievance Handling Committee for such
transfer and permanent absorption of the personnel.

(12) Upon the finalization and issue of orders in terms of the sub-clause (9)
and (11), the personnel shall form part of the services of the
Transferee concerned, in the post, scale of pay or seniority in
accordance with the orders that may be issued for this purpose,
without any further act, deed or thing to be done by the State
Government or the Board or the Transferee or the Personnel or any
other person.

(13) Subject to the provisions of the Act and this Scheme, the personnel
shall be governed by the Rules and Regulations framed by the Board
existing on the date of Transfer. The Transferee shall be entitled to
modify or frame new regulations governing the conditions of service of
personnel transferred to the Transferee under this Scheme, but the
rank, scale of pay, salary, allowances and other pecuniary benefits
including terminal benefits after the date of transfer shall not in any
way be less favourable than those which would have been applicable
to them if there had been no such transfer under the transfer scheme.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 7

(14) Managements of the companies shall prepare a new Human Resource

Policy Handbook taking into account the new requirements. However,
until such a Policy Handbook is issued, the existing policies shall be
continued as applicable.

(15) n respect of all statutory and other Schemes and employment related
matters including the provident fund, gratuity fund, pension (to whom it
is applicable on the date of the transfer) and any other superannuation
fund or any other fund created or existing for the benefit of the
personnel, the relevant Transferee shall stand substituted for the

Board for all intent and purposes and all the rights, powers and
obligations of the Board in relation to any and all such matters shall be
of the Transferee concerned and the services of the personnel shall be
treated as having been continuous for the above purpose.

(16) The State Government shall enter into a Tri-partite Agreement to
safeguard the pension liabilities and other personnel related liabilities
to the extent they are unfunded on the date of the transfer of the

Personnel from the Board including due payment of the amounts to
personnel who retire on or after the date of the transfer, by the
respective Transferees to which the personnel are transferred.

(17) The said Tri-partite Agreement shall provide for safeguarding the
terminal benefits to the employees retired before the date of transfer
and to the existing pensioners of the Board as on the date of transfer
and the payment to such employees. The payments to existing
pensioners shall continue to be met from the cash flow of the operation
of the Transferee. The payment to the existing pensioners shall be
directly from TANGEDCO and TANTRANSCO shall reimburse their
proportional share to TANGEDCO as specified in the said Tri-partite
Agreement.

For the purpose of this clause,

(a.) "Existing Pensioners" means all the personnel entitled to receive
pension or in receipt of pension under the Board, and shall include
family members of the personnel entitled to receive family pension
or in receipt of family pension as per the applicable scheme as on
the date of transfer from the Board; and

(b.) "TerminaI Benefits" means the TNEB's employee-related
liabilities, including payments of pension, gratuity, leave
encashment, general provident fund and includes Commutation of
pension, Family Security Fund, Special Provident Fund 1984,

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 8
Special Provident Fund 2000, Settlement of Contributory Pension
Scheme and any other retirement benefits and other applicable
benefits including the right to have the appropriate revisions in the
above benefits consistent with the practice that were prevalent in
the Board.

(18) All proceedings including disciplinary proceedings pending against the
personnel prior to the date of transfer from the Board to the Transferee
or from such Transferee to another Transferee, as the case may be, or
which may relate to misconduct, lapses or acts of commission or
omission committed before the date of transfer, shall not abate and
shall be continued by the Transferee concerned.

(19) The personnel transferred to the Transferees, shall be deemed to have
entered into an agreement with the Transferee concerned to repay
loans, advances and other sums due and perform obligations
undertaken by them to the Board which remain outstanding as on the
date of the transfer for the benefit of the Transferee in the same
manner on the same terms and conditions as contained in the
arrangement with the Board.

(20) The personnel shall cease to be in the service of the Board and shall
not assert or claim any benefit of service under the State Government
or the Board except as provided in this Scheme and in the Tripartite
Agreement. All other terms and conditions as specified in the Tripartite
Agreement, shall apply;

(21) Nothing contained in this Scheme shall apply to personnel of the State
Government or other organization on deputation to Board as on the
date of transfer but such personnel shall continue on deputation to the
Transferee concerned to whose services they are assigned on as is
where is basis till further orders of the Transferee.

7. Restrictions of rights and obIigations of third parties:- Upon

the transfer being effected in accordance with the provisions of the Act and
this Scheme, the rights and obligations of all persons shall be restricted to
the Transferee to whom they are transferred to and notwithstanding
anything to the contrary contained in any deed, documents, instruments,
agreements or arrangements which such person has with the Board, he
shall not claim any right or interest against the State Government, Board or
any other Transferee.




Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 9

8. Pending suits and proceedings:- (1) All Proceedings of whatever
nature by or against the Board pending on the date of the transfer shall
not abate or discontinue or otherwise in anyway prejudicial be affected
by reason of the transfer under this Scheme and the proceedings shall
be continued, prosecuted and enforced by or against the Transferee to
whom the same are assigned in accordance with this Scheme and
orders issued there under.

(2) The proceedings referred to in sub-clause (1) above shall be continued in
the same manner and to the same extent as it would or might have been
continued, prosecuted and enforced by or against the Board if the
transfers specified in this Scheme had not been made.

9. CIassifications and transfer of property, rights, IiabiIities and

proceedings to be provisionaI in the first instance:- (1) The
classification and transfer of Undertakings excluding personnel under this
Scheme, unless otherwise specified in any order made by the State
Government, shall be provisional for a period of one year from the
respective date of transfer. All transfer of personnel from the Board to
TANGEDCO under clause 6 shall be provisional for a period of three
years from the date of transfer and after this period, the transfer shall be
treated as final, subject to any order passed by the State Government
under sub-clause (2) of this clause.

(2) At any time within the provisional period specified in sub-clause (1) above
from the respective date of transfer, the State Government may, by order
to be notified amend, vary, modify, add, delete or otherwise change the
terms and conditions of the transfer including items included in the
transfer, and transfer the functions or such properties, interests, rights,
liabilities, personnel and proceedings forming part of an Undertaking of a
Transferee to that of another Transferee or to the State Government in
such manner and on such terms and conditions as the State Government
may consider appropriate in terms of the provisions of the Act.

(3) On the expiry of the provisional period as specified in sub-clause (1)
above from the respective date of transfer and subject to any directions
given by the State Government, the transfer of undertakings, properties,
interests, rights, liabilities, personnel and proceedings made in
accordance with the Scheme shall become final and the transfers under
this Scheme shall stand completed for all intent and purposes.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 10

10. Transfer by operation of Iaw:- The transfer under this Scheme shall
operate and be effective pursuant to the action of State Government in
issuing orders and in terms of this Scheme without any further act, deed or
thing to be done by the State Government, Board, Transferees or any other
person, subject to the terms and conditions of this Scheme.

11. Rights, duties and powers of the Transferees during the
provisionaI period:- (1)The Transferees shall continue to function
and undertake business activities assigned to them on behalf of and as
agents of the Board till such time the State Government issues a
notification authorizing the Transferee to undertake such functions and
activities on their own and independent of the Board.

(2) The State Government may issue the notification under sub-clause (1)
above from time to time in respect of one or more of the Transferees, but
all such notifications shall be issued before the end of the provisional
period mentioned in clause 9.

(3) The tariff terms and conditions for the sale and supply of electricity for
the services of transmission and distribution by the Transferee and all
other dealings between the Transferee and also with the Board shall be
as may be decided by the Board provisionally and shall be subject to the
determination and approval by the Commission.

(4) Till further orders of the Commission regarding the tariff determination,
the revenues from the distribution and retail supply of electricity shall be
collected by TANGEDCO in its entirety and will reimburse the expenses
of TANTRANSCO on actual basis till further order of the Commission on
determination of Tariff for transmission charges.

(5) The expenses incurred by the TNEB Limited will be reimbursed on
actual basis by TANGEDCO and TANTRANSCO in the proportion
determined by the Chairman TNEB Ltd in consultation with TANGEDCO
& TANTRANSCO.

(6) n terms of section 14 read with section 131 of the Act, the Transferee
concerned shall be a deemed Licensee for the activities and functions of
the Board transferred to them which require licenses, under the
provisions of the Act. However, the Transferee concerned shall apply to
the Commission for grant of licence under section 14 of the Act for
carrying on any of the activities after the issue of Notification of Transfer
Scheme by the State Government.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 11

12. Decision of the State Government shaII be finaI:- (1) f any
doubt, dispute, difference or issue arises in regard to the transfers
under this Scheme, subject to the provisions of the Act, the decision of

State Government thereon shall be final and binding.

(2) The State Government may, by an order published in the Official

Gazette, make such provisions, not inconsistent with the provisions of
the Act, as may appear to be necessary for removing the difficulties
arising in implementing the transfers under this Scheme.

(3) The State Government may by an order published in the Official
Gazette amend, vary, modify, add, delete or otherwise change the
terms and conditions specified in the Schedule or any clauses of this
Scheme at any time as it deems fit.


13. Exemption of Duty:- The transfer under this Scheme and its

implementation shall be exempted from all taxes, duties, levies of the State

Government and all its local bodies.




































Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 12

APPENDIX

SCHEDULE - A

PART I(a) Generation Undertakings


Unless otherwise specified by the State Government, the Generation
Undertakings shall comprise of the Assets, Liabilities and proceedings
belonging to the Tamil Nadu Electricity Board concerning the Generation of
electricity.

I. Existing Power Stations:


A. ThermaI:

(a) Ennore Thermal Power Station with all the five generating units (2X60
M.W and 3X110 M.W units) and a total installed Capacity of 450 MW and
with all associated and related equipment such as generators, turbines,
boilers, condensers, electrostatic precipitators, controls and
instrumentation, railway sidings, coal handling system, ash handling
system, ash pond, raw water supply and treatment system, DM water
plant, secondary fuel oil storage facilities and its handling system, switch
yard including step up transformers, service transformers, auxiliary unit
transformers, circuit breakers, High Tension & Low Tension switchgears,
control and protection system, overhead cranes, chimney, stores, spare
parts, consumables, raw materials etc. and works in progress.

(b) Mettur Thermal Power Station with four generating units of 210 MW each
with a total installed capacity of 840 MW each with all associated and
related equipment such as generators, turbines, boilers, condensers,
electrostatic precipitators, controls and instrumentation, Railway Sidings,
coal handling system, ash handling system, ash pond, raw water supply
and treatment system, DM water plant, secondary fuel oil storage facilities
and its handling system, switch yard including step up transformers,
service transformers, auxiliary unit transformers, circuit breakers, High

Tension & Low Tension switchgears, control and protection system,
overhead cranes, chimney, stores, spare parts, consumables, raw
materials and any other infrastructure connected with generation of
electricity including works in progress.

(c) North Chennai Thermal Power Station with three generating unit of 210

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 13
MW each with a total installed capacity of 630 MW with all associated and
related equipment such as generators, turbines, boilers, condensers,
electrostatic precipitators, controls and instrumentation, Railway Sidings,
coal handling system, ash handling system, ash pond, raw water supply
and treatment system, DM water plant, secondary fuel oil storage facilities
and its handling system, switch yard including step up transformers,
service transformers, auxiliary unit transformers, circuit breakers, High
Tension & Low Tension switchgears, control and protection system,
overhead cranes, chimney, stores, spare parts, consumables, raw
materials and any other infrastructure connected with generation of
electricity including works in progress.

(d) Tuticorin Thermal Power Station with five generating unit of 210 MW each
with a total installed capacity of 1050 MW with all associated and related
equipment such as generators, turbines, boilers, condensers, electrostatic
precipitators, controls and instrumentation, railway sidings, coal handling
system, ash handling system, ash pond, raw water supply and treatment
system, De-Mineralised water plant, secondary fuel oil storage facilities
and its handling system, switch yard including step up transformers,
service transformers, auxiliary unit transformers circuit breakers, High
Tension & Low Tension switchgears, control and protection system,
overhead cranes, chimney, stores, spare parts, consumables, raw
materials and any other infrastructure connected with generation of
electricity including works in progress.

B. Hydro Generating CircIes

(a) Kundah CircIe

Kundah Power House-1 has 3 units of 20 MW each with a total
installed capacity of 60 MW.
Kundah Power House-2 has 5 units of 35 MW each with a total
installed capacity of 175 MW.

Kundah Power House-3 has 3 units of 60 MW each with a total
installed capacity of 180 MW.
Kundah Power House-4 has 2 units of 50 MW each with a total
installed capacity of 100 MW.

Kundah Power House-5 has 2 units of 20 MW each with a total
installed capacity of 40 MW.
Kundah Power House-6 has 1 unit of 30 MW with an installed
capacity of 30 MW.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 14
Pykara Power House /Singara has 7 units comprising of 3 units of 7

MW, 1 unit of 11 MW & 2 units of 13.6 MW with a total installed
capacity of 59.2 MW.
Pykara Micro Power House has 2 units of 1 MW each with a total
installed capacity of 2 MW.

Moyar Power House has 3 units of 12 MW each with a total
installed capacity of 36 MW.
Maravakandy Power House has 1 unit of 0.75 MW with a total
installed capacity of 0.75 MW.

Mukurthy Micro Power House has 2 units of 350 kW each with a
total installed capacity of 700 KW.
PUSHEP has 3 units of 50 MW each with a total installed capacity
of 150 MW.
All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system,
overhead cranes, gantry cranes, hydraulic hoists, power house stores,
spare parts, consumables, raw materials and any other infrastructure
connected with generation of electricity including works in progress.

(b) Kadamparai CircIe

Sholayar Power House has 2 units of 35 MW each with a total
installed capacity of 70 MW.

Sholayar Power House has 1 unit of 25 MW with an installed
capacity of 25 MW.
Aliyar Power House has 1 unit of 60 MW with an installed capacity
of 60 MW.

Aliyar Mini Power House has 2 units of 1.25 MW each with a total
installed capacity of 2.50 MW.
Sarkarpathy Power House has 1 unit of 30 MW with an installed
capacity of 30 MW.

Kadamparai Power House (Pumped Storage Scheme) has 4 units
of 100 MW each with a total installed capacity of 400 MW.

Thirumurthy Mini Power House has 3 units of 0.65 MW each with a
total installed capacity of 1.95 MW.
Poonachi Mini Power House has 2 units of 1 MW each with a total
installed capacity of 2 MW.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 15

Amaravathi has 2 units of 2 MW each with a total installed capacity
of 4 MW.

All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system,
overhead cranes, gantry cranes, hydraulic hoists, power house stores,
spare parts, consumables, raw materials and any other infrastructure
connected with generation of electricity including works in progress.

(c) Erode CircIe

Mettur Dam Power House has 4 units of 12.5 MW each with a total
installed capacity of 50 MW.

Mettur Tunnel Power House has 4 units of 50 MW each with a total
installed capacity of 200 MW.
Lower Mettur Barrage Power House -1 / Chekkanur has 2 units of

15 MW each with a total installed capacity of 30 MW.

Lower Mettur Barrage Power House -2 / Nerinijipettai has 2 units of

15 MW each with a total installed capacity of 30 MW.

Lower Mettur Barrage Power House -3 / Kuthiraikkalmedu has 2
units of 15 MW each with a total installed capacity of 30 MW.
Lower Mettur Barrage Power House -4 / Uratchikottai has 2 units of

15 MW each with a total installed capacity of 30 MW.

Bhavani Kattalai Barrage has 2 units of 15 MW each with a total
installed capacity of 30 MW.
Sathanur has 1 unit of 7.5 MW with an installed capacity of 7.5 MW.

Lower Bhavani, Mini has 4 units of 2 MW each with a total installed
capacity of 8 MW.

Lower Bhavani RBC has 2 units of 4 MW with a total installed
capacity of 8 MW.

All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system,
overhead cranes, gantry cranes, hydraulic hoists, power house stores,
spare parts, consumables, raw materials and any other infrastructure
connected with generation of electricity including works in progress.


Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 16
(d) TiruneIveIi CircIe

Kodayar Power House has 1 unit of 60 MW with an installed
capacity of 60 MW.
Kodayar Power House has 1 unit of 40 MW with an installed
capacity of 40 MW.

Servalar Power House has 1 unit of 20 MW with an installed
capacity of 20 MW.
Papanasam Power House has 4 units of 8 MW each with a total
installed capacity of 32 MW.

Suruliyar Power House has 1 unit of 35 MW with an installed
capacity of 35 MW.
Periyar Power House has 4 units of 35 MW each with a total
installed capacity of 140 MW.

Vaigai Power House has 2 units of 3 MW each with a total installed
capacity of 6 MW.

Perunchani has 2 units of 0.65 MW each with a total installed
capacity of 1.30 MW.

All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system,
overhead cranes, gantry cranes, hydraulic hoists, power house stores,
spare parts, consumables, raw materials and any other infrastructure
connected with generation of electricity including works in progress.

C. Gas Turbine Power Stations

(a) Basin Bridge Gas Turbine Power Station (BBGTPS) has 4 units of 30 MW
each with a total installed capacity of 120 MW.
(b) Thirumakottai Gas Turbine Power Station (Kovilkalappal) (TKGTPS) with
a total installed capacity of 107.88 MW.
(c) Kuttalam Gas Turbine Power Station (KGTPS) with a total installed
capacity of 101 MW.
(d) Valuthur Power Station (VGTPS) has 2 units with a total installed capacity
of 187 MW.





Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 17
All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system,
overhead cranes, gantry cranes, hydraulic hoists, power house stores,
spare parts, consumables, raw materials and any other infrastructure
connected with generation of electricity including works in progress.

D. Wind Energy Generating Stations

Total number of 108 Wind farms having a total installed capacity of 17.55

MW.

All the above units along with generators, turbines and all associated and
related equipment and switch yard including step up transformers, step
down transformers, circuit breakers, control and protection system and
other related accessories required for Wind Energy Generating Stations
including spare parts, consumables, raw materials and any other
infrastructure connected with generation of electricity including works in
progress.

II. Power Projects Under Construction:

State Sector:

(a) North Chennai Thermal Power Station (NCTPS) Stage 2, with 2 units
of 600 MW each with a total installed capacity of 1200 MW;
(b) Mettur Thermal Power Station, Stage 3, with 1 unit of installed
capacity of 600 MW;
(c) Bhavani Kattalai Barrage, Power House & , each 2 units of 15 MW
with a total installed capacity of 60 MW;
(d) Bhavani Barrage - & , each 2 units of 5 MW with a total installed
capacity of 20 MW;
(e) Periyar Vaigai 4 Power Houses with total capacity of 13 MW;

Joint Venture Projects

(a) TNEB-NTPC at Vallur with 3 units of 500 MW each with total installed
capacity of 1500 MW;
(b) TNEB-NLC at Tuticorin with 2 units of 500 MW each with total installed
capacity of 1000 MW;

(c) TNEB-BHEL at Udangudi with 2 units of 800 MW each with total
installed capacity of 1600 MW;



Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 18
III. GeneraI Assets:

The following assets, if they exclusively or primarily pertain to the
generating stations or projects referred to in items and above or
activities related to such, generating stations or projects;

(a) Special tools and equipment, material handling equipment, earth movers,-
bulldozers, concrete mixtures, cranes, trailers, heavy and light vehicles,
furniture, fixtures, office equipment, air conditioners, refrigerators,
computers and signal systems, spares, consumables, raw materials, lands
and civil works installations including dams, barrages, canals, roads,
buildings, staff quarters, rest houses, properties and structures and their
associated buildings, schools, dispensaries, testing laboratories and
equipment, training centers, workshops, works in progress, machinery and
equipment sent for repairs, scraps and obsolete..

(b) All independent and stand-alone rest houses, which are not part of any
substations/installations of the Board.
(c) The office establishment and other buildings and lands, not covered
elsewhere in this schedule, which are predominantly occupied/used for the
activities of generation undertakings as on the effective date of transfer.

IV. MisceIIaneous:

(a) Contracts, agreements, interest and arrangements to the extent they are
associated with or related to generation activities or to the undertakings or
assets referred to in item Nos to above.
(b) Loans, secured and unsecured, to the extent they are associated with or
related to generation activities or to the-undertakings or assets referred to
n Para to above.

(c) Other current assets to the extent they are associated with or related to
generation activities or to the undertakings or assets referred to in Para
to above.
(d) Other Current liabilities and provisions to the extent they are associated
with or related to generation activities or the undertakings or assets
referred to in Para to above.
(e) Contingent liabilities to the extent they are recognized and are associated
with or related to generation activities or to the undertakings or assets
referred to in Para's to above.

(f) Other liabilities to the extent they are associated with or related to
generation activities or to the undertakings or assets referred to in items
to above.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 19
(g) Proceedings to the extent they are associated with or related to generation
activities or to the undertakings or assets referred to in Para to above.

V. GeneraI:

(a) The assets of the generating undertaking as described above shall stand
vest in TANGEDCO.
(b) n consideration of the transfer as mentioned above, the State

Government may direct TANGEDCO to issue instrument such as equity
shares, preference shares, debentures and other securities in favour of
the State Government as specified in Part - of Schedule A.















































Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 20
Part I (b) Distribution Undertaking


Unless otherwise specified by the State Government, the Distribution
Undertaking shall comprise of all the Assets, Liabilities and proceedings
belonging to the Tamil Nadu Electricity Board concerning the distribution of
electricity in the area of supply to all the Circles of Tamil Nadu.

I. Distribution Assets:-


All 33 KV, 22 KV, 11 KV, LT (Single phase 2 wire to 3 phase 5 wire) lines

(with overhead lines, Aerial Bunched cables and underground cables) and
sub-stations on different types of supports with various sizes of conductors
and step up/step down power transformers and distribution transformers,
breakers, capacitor banks, protective and metering devices and control
rooms, boosters, wireless system, testing laboratories, SCADA and AMR
systems, lands (including right of way), buildings, roads, diesel generating
sets or other conventional and non-conventional generating units, service
connections and installations inside consumer's premises, street lighting and
signal systems owned by or leased to the Board but excluding fittings, fixtures
and installations owned, by private persons or local authorities, including any
of the above assets under construction as on effective date of transfer.

II. GeneraI Assets:-

The following, if they exclusively or primarily pertain to the above mentioned
distribution systems, properties or projects or activities related to such
distribution systems, properties or projects:

(a) Special tools and equipment, material handling equipment, earth movers,
bulldozers, concrete mixtures, cranes, trailers, heavy and light vehicles,
furniture, fixtures, office equipment, air conditioners, refrigerators,
computers and signal systems, spares, consumables, raw materials, lands
and civil works installations including roads, buildings, staff quarters, rest
houses, properties and structures and their associated buildings, schools,
dispensaries, testing laboratories and equipment, training centres,
workshops, works in progress, machinery and equipment sent for repairs,
scraps and obsolete.

(b) All independent and stand-alone rest houses, which are not part of any
substations/installations of the Board.
(c) The office establishment and other buildings and lands, not covered

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 21
elsewhere in this schedule which are predominantly occupied/used for the
activities of distribution undertaking as on the effective date of transfer.

III. MisceIIaneous:-

(a) Contracts, agreements, interest and arrangements to the extent they are
associated with or related to distribution activities or to the undertakings or
assets referred to in item Nos and above.
(b) Loans, secured and unsecured to the extent they are associated with or
related to distribution activities or to the undertakings or assets referred to
in item Nos and above.

(c) Other Current Assets to the extent they are associated with or related to
distribution activities or to the undertakings or assets referred to in item

Nos and above.

(d) Other Current liabilities and provisions to the extent they are associated
with or related to distribution activities or the undertakings or assets
referred to in item Nos and above.

(e) Contingent liabilities to the extent they are recognized and are associated
with or related to distribution activities or to the undertakings or assets
referred to in item Nos and above.
(f) Other liabilities to the extent they are associated with or related to
distribution activities or to the undertakings or assets referred to in item
Nos and above.

(g) Proceedings to the extent they are associated with or related to
distribution activities or to the undertakings or assets referred to in item
Nos and above.

IV. GeneraI:-

(a) The assets of the distribution undertaking as described above shall stand
vest in TANGEDCO.
(b) n consideration of the transfer mentioned above, the State Government
may direct TANGEDCO to issue instrument such as equity shares,
preference shares, debentures and other securities in favour of the State
Government as specified in Part - of Schedule A.








Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 22
Part II Generation and Distribution Undertakings




Aggregate Assets and LiabiIities vested in TamiI Nadu Generation and
Distribution Corporation Limited (TANGEDCO)

































Note:-

1. The above opening balance sheet has been drawn on a provisional basis
based on available accounts of the Financial Year 2008-09 of the Board
and will be considered as a provisional balance sheet as on 01.11.2010
for the Transferee. The amounts mentioned under various heads are
subject to validation, verification, updation and truing up and these shall
be completed during the provisional period mentioned in Clause 9 of the

Transfer Scheme.

2. The amounts mentioned under current assets and current liabilities shall
also be subject to audit and finalization.
The shares to the extent of the value of the share capital mentioned above
shall be issued by the TANGEDCO to the TNEB Limited at par as on the
date of the transfer

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 23
Part III Functions and Duties of TANGEDCO


The functions and duties of the TANGEDCO will be detailed as per the
clause of the Memorandum of Association and Articles of Association of the
company framed thereunder as originally framed or as altered from time to time.

(a) Re-organisation of the Board:- To primarily engage in the business of
Distribution and Generation of electricity and be vested with the
distribution and generation assets, interest in property, rights and liabilities
of the Board necessary for the business of distribution and generation, as
per the decision of the State Government to reorganise the Board under
the provision of Part X (Reorganisation of Board) of the Act (and the
transfer schemes notified thereunder) and the resolutions, circulars,
ordinances and notification issued in these regard and the company shall
act as Distribution Licensee under the provisions of section 14 of the Act.

(b) Business of Generation of EIectric Energy:- (1) To take over existing
electricity generation stations of the Board and the electric generation
stations owned or controlled by the State Government or any
Government Corporation or authorities or generation stations of any
other person including any interest in electric generation projects or
facilities in the State or elsewhere and to acquire, establish,
construct, erect, lay, operate, run, maintain, enlarge, alter, renovate,
modernise, work and use in the State and elsewhere, electric
generating stations, projects associated and all things connected
thereto including civil works, fuel, water, and waste storage, use and
disposal systems, distribution centres, cables, wires, lines,
accumulators, plant, motors, meters, apparatus, materials and things
connected with the production, generation, use, storage,
measurement, transmission, supply and distribution of the power.

(2) To acquire, establish, develop, construct, erect, lay, operate, run,
maintain, enlarge, alter, renovate, modernize, work and use in the
State and elsewhere, electric generating stations, projects associated
and all things connected thereto including civil works, fuel, water, and
waste storage, use and disposal systems, distribution centres, tie-
lines, sub-stations and dedicated transmission lines, cables, wires,
lines, accumulators, plant, motors, meters, apparatus, materials, and
things connected with the production, generation, use, measurement,
transmission and supply of electricity.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 24

(c) Business of Distribution of EIectric Energy:- (1) To take over the
existing electricity distribution system and facilities of the Tamil Nadu

Electricity Board, to undertake the electricity sub-transmission
distribution and retail supply in the State of Tamil Nadu or outside and
for this purpose to plan, acquire, establish, construct, erect, lay,
operate, run, manage, maintain, enlarge, alter, renovate, modernise,
work and use a power distribution system network in all its aspects and
electricity lines and associated sub-stations, including distribution
centres, cables, wires, accumulators, plants, motors, meters,
apparatus, computers and materials connected with sub-transmission,
distribution, supply of electrical energy, communication and
telemetering equipment, to undertake for and on behalf of others the
erection, operation, maintenance, management of extra high voltage,
high voltage, medium voltage and low voltage lines and associated
sub-stations, equipment, apparatus, cables and wires.

(2) To study, investigate, collect information and data, review operations,
plan, research, design, prepare feasibility reports, prepare project
reports, diagnose operational difficulties and weaknesses and advise
on the remedial facilities and to undertake for and on behalf of others
the setting up of electric power plants and generally work for the
efficient and economic management of electric power and the optimum
utilization of the resources available.

(d) Common Business of the Company:- (1) To plan, promote and
organize an integrated and efficient development of electric power in
all its aspects including study, planning, investigation, collection of
information and data, review operations, plan, design, research and
preparation of preliminary, feasibility and definite project reports,
diagnose operational difficulties and weakness and advise on the
remedial facilities and take up necessary development and
construction, (including any consequential environmental protection of
a forestation and rehabilitation works), erection, procurement work for
establishment for Power projects for generation of electricity by use of
any type of fuel in any manner, distribution of all forms of electric
power, operation and maintenance including renovation and
modernization of electric power stations and projects establishment of
distribution systems and any matter connected with distribution and/or
supply of electrical power generated at electric Power Stations and
generally work for the efficient and economic management of electric

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 25
power and the optimum utilization of the resources available.

(2) To carry on the business of generating, purchasing, importing,
exporting, selling, trading of electrical energy, including formulation of
tariff, billing and collection thereof; to tender, finalize and execute

Power Purchase Agreements with the Bulk purchasers, Bulk supplier,
other generating companies, Central and State generating stations,
regional Electricity Board / neighbouring States / utilities and other
entities; to execute agreements for sale of power to other distribution
companies and other persons and to coordinate, aid and advise on the
activities of other companies and concerns, including subsidiaries,
associates and affiliates, engaged in generation, transmission,
distribution, supply and wheeling of electrical energy, on all the matters
concerning to generation and distribution of Electricity.

(3) To carry on the business of purchase and sale of all forms of electrical
power, both conventional and non-conventional, and also to supply,
import and export or otherwise deal in all forms of electrical energy.

Without prejudice to generality of the above functions, the Company
shall carry out the business of
(i) Purchase of all forms of power/electricity from ndependent Power
Producer (PPs), Captive Power Plants, other Generating
Companies, State Electricity Boards, State Governments
Statutory bodies, Licensees, Power utilities and to procure it from
other sources (whether in Private, Public or Joint Sector
Undertakings) including import from abroad;
(ii) Sell all forms of electrical power to the State Electricity Boards,
Power Utilities, Generating Companies, Distribution Companies,
State Governments, Licensees, Statutory bodies, other
organizations and bulk customers of power, whether in private
and public sector or joint sector undertakings, in ndia and abroad;

(iii) Supply, distribute, export, or otherwise transfer/exchange of
electrical power, and
(iv) Co-ordinate with all concerned for purchase, import, sale, export,
distribute and supply all forms of electrical power, and undertake
all connected functions.






Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 26
SCHEDULE - B

PART I -Transmission Undertaking


Unless otherwise specified by the State Government, the Transmission

Undertaking shall comprise of all the Assets, Liabilities and proceedings
belonging to the Tamil Nadu State Electricity Board concerning the transmission
of electricity in the State.

I. Transmission Assets:-

(a) All the transmission lines having the capacity to carry electricity at
voltages of 66 KV and above (notwithstanding the same are presently
charged at voltages below 66 KV) on double circuit / single circuit / single
circuit on double circuit towers with Grid substations of various capacities
with all associated and related equipment, including step-up, step-down
transformers, circuit breakers, switch gear sets in substation, metering
arrangements and other protective devices with power-line communication
system, allied control rooms, load dispatch centre, lands (including right of
way), buildings, roads and other auxiliary assets spread over within and
outside the territory of the State including such assets under construction
and assets acquired, transferred or rights of which were vested with the
Board by transfer, sale, lease or otherwise, but excluding such
constructions or installations lawfully owned and operated by others.

(b) n addition to the above, the 33 KV and below distribution system which
are in the 66 KV and above Grid Sub-stations and are integral part of the
transformation from 66 KV and above voltages to 33 KV and below
voltages shall be part of the transmission system and they shall not form
part of the distribution undertakings notwithstanding anything contained in
any other schedule.

JJ. GeneraI Assets:

(a) The following, if they exclusively or primarily pertain to the above
mentioned transmission systems properties or projects or activities related
to such transmission systems.

Special tools and equipment, material handling equipment, earth movers,
bulldozers, concrete mixtures, cranes, trailers, heavy and light vehicles,
furniture, fixtures, office equipments, air conditioners, refrigerators,
computers and signal systems, spares, consumables, raw materials, lands
and civil work installations including roads, buildings, staff quarters, rest
houses, properties and structures and their associated buildings, schools,

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 27
dispensaries, testing laboratories and equipment, training centres,
workshops, works in-progress, machinery and equipment sent for repairs,
scraps and obsolete.

(b) All independent and stand-alone Rest houses, which are not part of any
substations/installations of the Board.
(c) The office establishment and other buildings and lands, not covered
elsewhere in this schedule which are predominantly occupied/used for the
activities of Transmission Undertakings as on the effective date of
transfer.

III. MisceIIaneous:-

(a) Contracts, agreements, interest and arrangements to the extent they are
associated with or related to transmission activities or to the undertakings
or assets referred to in item Nos and above.
(b) Loans, secured and unsecured to the extent they are associated with or
related to transmission activities or to the undertakings or assets referred
to in item Nos and above.

(c) Other Current Assets to the extent they are associated with or related to
transmission activities or to the undertakings or assets referred to in item
Nos and above.
(d) Other Current liabilities and provisions to the extent they are associated
with or related to transmission activities or the undertakings or assets
referred to in item Nos and above.

(e) Contingent liabilities to the extent they are recognized and are associated
with or related to transmission activities or to the undertakings or assets
referred to in item Nos and above.
(f) Other liabilities to the extent they are associated with or related to
transmission activities or to the undertakings or assets referred to in item
Nos and above.

(g) Proceedings to the extent they are associated with or related to
transmission activities or to the undertakings or assets referred to in item
Nos and above.

IV. GeneraI:-

(a) The assets of the transmission undertaking as described above shall vest
in TANTRANSCO.

(b) n consideration of the transfer mentioned above, the State Government
may direct TANTRANSCO to issue instrument such as equity shares,
preference shares, debentures and other securities in favour of the State
Government as specified in Part - of Schedule B.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 28
Part II -Transmission Undertaking




Aggregate Assets and LiabiIities vested in TamiI Nadu
Transmission Corporation Limited (TANTRANSCO)






























Note:-

1. The above opening balance sheet has been drawn on a provisional basis based
on available accounts of the Financial Year 2008-09 of the board and will be
considered as a provisional Balance Sheet as on 01.11.2010 for the Transferee.
The amounts mentioned under various heads are subject to validation,
verification, updation and truing up and these shall be completed during the
provisional period mentioned in Clause 9 of the Transfer Scheme.

2. The amounts mentioned under current assets and current liabilities shall also be
subject to audit and finalization.

3. The shares to the extent of the value of the share capital mentioned above shall
be issued by the TANTRANSCO to the TNEB Limited at par as on the date of the
transfer.







Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 29

Part III - Functions and Duties of TANTRANSCO


The functions and duties of the Tamil Nadu Transmission Corporation

Ltd. (TANTRANSCO) will be detailed as per the Memorandum of Association
and Articles of Association of the company as originally framed or as altered
from time to time.

(a) Re-organisation of the Board:- To primarily engage in the business of
transmission of electricity and be vested with the transmission assets,
interest in property, rights and liabilities of the Tamil Nadu Electricity Board

(The Board) necessary for the business of transmission, as per the
decision of the State Government to reorganise the Board under the
provision of Part X (Reorganisation of Board) of the Act (and the transfer
schemes notified thereunder) and the resolutions, circulars, ordinances
and notification issued in these regard and the company shall act as
Transmission Licensee under the provision of section 14 of the Act.

(b) Business of Transmission of EIectric Energy:- To plan, acquire,
establish, construct, erect, lay, operate, run, manage, maintain, enlarge,
alter, renovate, modernize, work and use a power system network in all its
aspects and extra high voltage, high voltage and associated sub-stations,
including computers and materials connected with transmission,
communication and telemetering equipment, to undertake for and on
behalf of others, the erection, operation, maintenance, management of
extra high voltage and high voltage lines, associated substations,
equipment, apparatus, cables and wires.

(c) Load Despatch Functions:- To undertake planning and coordination
activities with regard to transmission works connected with the
transmission, in the State scheduling and Load Despatch functions and
such other functions as may be assigned to the Company by law or
otherwise by the State Government or the Government Authority specified
in this behalf concerning the operation of the power system and to
coordinate, aid and advise on the activities of other companies/entities,
including subsidiaries, associates and affiliates, engaged in generation,
transmission, distribution, supply and wheeling of electrical energy.



Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 30
(d) Research & DeveIopment:- To study, investigate, collect information and
data, review operation, plan, research, design and prepare project report,
diagnose operational difficulties and weakness and advise on the remedial
measures to improve and undertake development of new and innovative
product connected with business of the Company as well as modernize
existing Extra High Voltage, High Voltage lines and sub-stations.

(e) ConsuItancy Services:- To provide Engineering Consultancy services.




















































Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
Page No. 31
SCHEDULE C

PART I -HoIding Undertakings

Functions and Undertakings to be retained with the
TNEB Limited (HoIding Company)

(1) The liabilities to the extent to be retained by the TNEB Limited as per the
direction the State Government may issue.
(2) This Company will be primarily an investment company and shall invest in
companies in the field of electricity. These companies may be engaged in
the business of generation, transmission, distribution and trading of
electricity or any or all of these activities.

(3) The Company shall be the holding company of the TANGEDCO and the
TANTRANSCO (hereinafter referred to as a Successor Entities), vested
with the assets, interest in property, rights and liabilities of the Tamil Nadu
Electricity Board (The Board) as per the decision of the State

Government to reorganize the Board under the provisions of Part X

(Reorganisation of Board) of the Act (and the transfer scheme notified
thereunder) and the resolutions, circulars, notification or ordinances
issued in this regard.

(4) Control over and supervision of Common Assets and the Management of
the Common Facilities and Common Services as the Chairman of the
TNEB Limited may from time to time by order direct during the provisional
period specified under Clause 0 of the Scheme.

(5) Subject to and till further orders of the State Government, the
implementation, coordination and monitoring of the projects and schemes
supported by any financial institution, Accelerated Power Development
Reform Programme and any other scheme concerning the electricity
sector in the State shall continue to be undertaken by the TNEB Limited.

The State Government may at any time and from time to time direct the
transfer of the functions relating to any of the above projects or schemes
or any part thereof to any of the Transferees, as the State Government
may decide.

(6) Proceedings as the Chairman of the TNEB Limited may from time to time
by order direct during the provisional period specified under Clause 0 of
the Scheme.
(7) To hold any residual assets or liabilities not forming part of Schedules A to
C and not otherwise adjusted or settled by the State Government.


Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
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PART II - HoIding Undertaking


Aggregate Assets and LiabiIities vested in TNEB Limited






























Note:-

1. The above opening balance sheet has been drawn on a provisional basis based
on available accounts of the Financial Year 2008-09 of the Board and will be
considered as a provisional Balance Sheet as on 01.11.2010 for the Transferee.
The amounts mentioned under various heads are subject to validation,
verification, updation and truing up and these shall be completed during the
provisional period mentioned in Clause 9 of the Transfer Scheme.

2. The amounts mentioned under current assets and current liabilities shall also be
subject to audit and finalization.

3. The shares to the extent of the value of the share capital mentioned above shall
be issued by the TNEB Limited to the State Government at par as on the date of
the transfer.

P.W.C. Davidar,

Principal Secretary to Government.



//True Copy//

SECTON OFFCER.

Tamil Nadu Electricity Reforms First Transfer Scheme, 2010 Final -2 (corrected version)
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