G1 G2

SERC

SLDCSEB/STU

State Govt.

RLDC

REB

CTU

CERC

Central Govt. CEA

ISTS

ISGS

Load

L1 L2

Intra State System

IEGC to Operate on the periphery

X= - GL G

X= Drawl From Grid

L= Total Load

G=State Gen

CONTROL AREAS

CS - 1 CS - 3

CS - 2

SEB-B SEB-C

STATE

DISTR - A DISTR - C

DISTR - B

SEB's GRIDSLDCCOORDINATES/DIRECTS

SEB-A

COORDINATES/RLDC

REGIONAL GRID

IPP

STATEGENR.

SHARECENTRAL

AVAILABILITY BASED TARIFF

NEED FOR ABT

• LOW FREQUENCY DURING PEAK HOURS (48.0-48.5 HZ)

• HIGH FREQUENCY DURING OFF PEAK HOURS (50.5-51.0 HZ)

• RAPID & WIDE FREQUENCY CHANGES OF 1 HZ WITHIN 5 TO 10 Mts. FOR MANY HOURS IN A DAY

• VERY FREQUENT GRID DISTURBANCES,CAUSING TRIPPING OF GENERATING STATIONS

• IN 2 PART TARIFF FC+VC IS BEING CHARGED TO BENEFICIARIES IN PROPORTION TO ACTUAL ENERGY DRAWN

TERMINOLOGY

TWO PART ABT

1.FIXED COST *CAPACITY CHARGES

2.VARIABLE COST *ENERGY CHARGES

3.MONTHLY DATA *15 Mts TIME BLOCK

4.JMR READINGS *SEMS READINGS

OTHER TERMS IN ABT

DECLARED CAPABILITY

SCHEDULED ENERGY

UNSCHEDULED INTERCHANGE (UI)

What is Availability Based Tariff (ABT)?

Day-Ahead Scheduling

Regional Energy Accounting (REA)

Real time operation

Availability Based Tariff (ABT) will be applicable at the regional grid level only between the ISGS stations and the SEBs/STUs.

However a similar scheme between the SEBs/STUs and the GENCOs and DISCOMs within the state is desirable.

Components of inter-utility tariff(Pre – ABT Mechanism)

Fixed charges Interest on loans Depreciation O & M charges Return on equity Interest on Working Capital

Energy charges (fuel cost) Incentives Surcharge & other levies No charge for reactive energy

Payment to Inter State Generating Stations (ISGS) from beneficiaries

(Post Availability Based Tariff )

Capacity chargesEnergy chargesUnscheduled Interchange (UI)

CAPACITY CHARGE

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

Declared Capacity’ or ‘DC' means the capability of the generating station to deliver ex-bus electricity in MW declared by the such generating station in relation to any period of the day or whole of the day, duly taking into account the availability of fuel;.

Note :In case of a gas turbine generating station or a

combined cycle generating station, the generating station shall declare the capacity for units and modules on gas fuel and the liquid fuel separately, and these shall be scheduled separately. Total declared capacity and total scheduled generation for the generating station shall be the sum of the declared capacity and scheduled generation for gas fuel and liquid fuel for the purpose of computation of availability and Plant Load Factor respectively.

FIXED COST CALCULATION

• 1st Month = (1xACC1)/12• 2nd Month = (2xACC2-1xACC1)/12• 3rd Month = (3xACC3-2xACC2)/12• 4th Month = (4xACC4-3xACC3)/12• 5th Month = (5xACC5-4xACC4)/12• 6th Month = (6xACC6-5xACC5)/12• 7thMonth = (7xACC7-6xACC6)/12• 8thMonth = (8xACC8-7xACC7)/12• 9th Month = (9xACC9-8xACC8)/12• 10th Month = (10xACC10-9xACC9)/12• 11th Month = (11xACC11-10xACC10)/12• 12th Month = (12xACC12-11xACC11)/12

ACC:1-12 REPRESENTS THE AMOUNT OF ANNUAL CAPACITY CHARGES, CORRESPONDING TO THE AVAILABILITY FOR THE CUMULATIVE PERIOD UPTO THE END OF CALCULATED MONTH

TWO PART TARIFF CONCEPTS• FIXED PART RECOVERY

PLF RECOVERY0% 50% OF FIXED COST

0%-62.78% 50%-100% FIXED COST

62.78-68.48% DEAD BAND

>68.48% INCENTIVE STARTS• INCENTIVE AT 1 Ps/Kwh FOR EVERY 1%

INCREASE IN PLF RISE ABOVE 68.48%

(WHICH INCLUDES DEEMED GENERATION )

TWO PART TARIFF CONCEPTS• FIXED PART TARIFF INCLUDES1.RETURN ON EQUITY (ROE)

2.DEPRECIATION

3.INTEREST ON WORKING CAPITAL

4.MISC TAXES

5.O&M COST- WHICH INCLUDES

a)EMPLOYEE COST

b)REPAIR& MAINTENANCE COST

c)OVERHEADS

ENERGY CHARGE

Energy charges shall be worked out on the basis of a paise per kwh rate on ex-bus energy scheduled to be sent out from the generating station as per the following formula

Energy charges = Rate of energy charges

(paise/kwh) x Scheduled Generation (ex-bus MWh)

Scheduled Generation’ or ‘SG' at any time or for any period or time block means schedule of generation in MW ex-bus given by the Regional Load Dispatch Centre;.

Note For the gas turbine generating station or a combined

cycle generating station for any time block, if the average frequency for any time block, is below 49.52 Hz but not below 49.02 Hz and the scheduled generation is more than 98.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 98.5% of the declared capacity, and if the average frequency of the for any time block is below 49.02 Hz and the scheduled generation is more than 96.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 96.5% of the declared capacity.

1000

900

800

700

600

500

400

300

200

100

0

0 2 4 6 8 10 12 14 16 18 20 22 24

Forecast ex-bus capability of Power Plant

Hours

MW

Net Injection Schedule

SEB - A's Requisition

SEB - A's Entitlement - (40% )

SCHEDULING

TWO PART TARIFF CONCEPTS• VARIABLE PART RECOVERY

AS PER NORMS1.AUX.POWER CONSPN : 3%2. HEAT RATE (C C) : 2000 Kcal/kWh

• PRICE ESCALATION OF FUEL IS PROTECTED WITH FUEL PRICE ADJUSTMENT.

• FUEL COST= BASE COST+FUEL PRICE ADJ (FPA)

• UNSCHEDULED INTERCHANGES (UI): 1. VARIATION IN ACTUAL GENERATION / DRAWAL WITH RESPECT

TO SCHEDULED GENERATION / DRAWAL SHALL BE ACCOUNTED FOR THROUGH UNSCHEDULED INTERCHANGE (UI).

2. RATES BASED ON AV.FREQUENCYOF THE TIME BLOCK

3. CALCULATED WITH 15 MIN TIME BLOCK

4. UI RATES SHALL BE FREQUENCY DEPENDENT AND UNIFORM THROUGHOUT THE COUNTRY.

5. UI FOR BENEFICIARY SHALL BE EQUAL TO ITS TOTAL ACTUAL DRAWAL MINUS ITS TOTAL SCHEDULED DRAWAL.

Unscheduled Interchange(UI) Charges : (contd..)

(i) Any generation up to 105% of the declared capacity in any time block of 15 minutes and averaging up to 101% of the average declared capacity over a day shall not be construed as gaming, and the generator shall be entitled to UI charges for such excess generation above the scheduled generation (SG).

(ii) For any generation beyond the prescribed limits, the Regional Load Dispatch Centre shall investigate so as to ensure that there is no gaming, and if gaming is found by the Regional Load Dispatch Centre, the corresponding UI charges due to the generating station on account of such extra generation shall be reduced to zero and the amount shall be credited adjusted towards in UI account of beneficiaries in the ratio of their capacity share in the generating station.

UNSCHEDULED INTERCHANGE (UI) RATES

600

280

0

570

210

00

70

140

210

280

350

420

490

560

49.00 49.82 50.50

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

UI Rate ( as per 26-03-04 order)

UI Rate ( as per 15-07-04 order)

FREQUENCY IN HZOLD RATE BASED ON ORDER

DATED 26.03.04NEW RATE BASED ON ORDER DTD. 15.07.04

FROM TO Ps/KWh Ps/KWh

<49.02 49.02 600 570

49.02 49.04 592 561

49.04 49.06 584 552

  -------- -------- --------

49.50 49.52 400 345

49.52 49.54 392 336

49.54 49.56 384 327

49.56 49.58 376 318

49.58 49.60 368 309

49.60 49.62 360 300

49.62 49.64 352 291

  -------- -------- --------

49.76 49.78 296 228

49.78 49.80 288 219

49.80 49.82 280 210

49.82 49.84 272 204

49.84 49.86 264 198

49.86 49.88 256 192

  -------- -------- --------

50.44 50.46 24 18

50.46 50.48 16 12

50.48 50.50 8 6

  >50.50 0 0

NOTE: REVISED RATES WILL COME INTO EFFECT PROSPECTIVELY.

AVAILABILITY BASED TARIFF

(A) CAPACITY CHARGE

(B) ENERGY CHARGE

(C) ADJUSTMENT FOR DEVIATIONS

(U I CHARGE)

(A) = a function of the Ex-Bus MW availability of Power Plant for the day declared before the day starts x SEB’s % allocation from the plant

(B) = MWh for the day as per Ex-Bus drawal schedule for the SEB finalised before the day starts x Energy charge rate

(C) = Σ (Actual energy interchange in a 15 minute time block – scheduled energy interchange for the time block) x UI rate for the time block

TOTAL PAYMENT FOR THE DAY = (A) + (B) ± (C)

Hence under ABT :

CAPACITY CHARGE and ENERGY CHARGE do not depend on actual plant generation / drawal. No metering required for this as they are based on off-line figures. All deviations taken care of by UI

No complication regarding deemed generation.

Perpetual incentive for maximizing generation and reducing drawal during deficit, but no incentive to over generate during surplus with in the UI norms.

FEATURES OF ABT

In case of ISGS , • RLDC WILL REVISE THE SCHEDULE IN CASE OF UNIT

OUTAGE.IT WILL BE EFFECTIVE FROM THE 4TH TIME BLOCK COUNTING THE TIME BLOCK IN WHICH REVISION IS ADVICED BY THE GENERATOR TO BE 1ST ONE.

• IN CASE OF TRANSMISSION LINE BOTTLENECK RLDC WILL REVISE THE SCHEDULE. IT WILL BE EFFECTIVE FROM THE 4TH TIME BLOCK

• REVISION BY GENERATORS WILL BE EFFECTIVE FROM THE 6TH TIME BLOCK

• IN CASE OF GRID DISTURBANCE,SCHEDULES OF GENERATION AND DRAWAL SHALL BE DEEMED TO HAVE BEEN REVISED TO ACTUALS.GRID DISTURBANCE & IT’S DURATION WILL BE CERTIFIED BY RLDC

• IN ABT,TRANSMISSION LOSSES WILL BE APPORTIONED IN PROPORTION TO DRAWALS

OTHER COMPONENTS OF AVAILABILITY BASED TARIFF

• INCENTIVES:• BASED ON SCHEDULED GENERATION ( NO

DEEMED GENERATION)• FROM 01-04-2004

ABOVE 80 %PLF- 25 Paise/Kwh – PAYABLE AS PER THE INDIVIDUAL ALLOTTED

CAPACITY.• PAYMENT ON MONTHLY BASIS ,YEARLY

ADJUSTED.

• SCHEDULING :AS PER IEGC CODE.

• DEMONSTRATION OF DECLARED CAPABILITY:• RLDC MAY ON ITS OWN OR REQUESTED BY BENEFICIERIES

ASK FOR DEMONSTRATION OF DECLARED CAPABILTY.• PENALTY ON FAILING TO DEMONSTRATE /

MIS DECLARATION:– TWO DAYS FIXED CHARGES FOR FIRST TIME.– FOUR DAYS FIXED CHARGES FOR SECOND TIME.– SAME WAY IN GEOMETRICAL PROGRESSION .– CONTINUED GAMING BEYOND FIVE TIMES IN A YEAR

CAN BE DEALT AS PER SECTION 45 OF ERC ACT.

CONTD..

FINAL ABT ORDER• TARGET GENERATION IS SET AT 80%

AVAILABILITY• INCENTIVE STARTS AT 80% PLF

(SCHEDULED GENERATION)• NO DEEMED GENERATION CONCEPT• INCENTIVE FOR GENERATION BEYOND

80% PLF WITH A CEILING OF 25.0 Ps/Kwh.• ROE IS AT 14%• ALL OPERATIONAL NORMS WERE

REVISED AS ON 01.04.04

TARIFF ORDERAUX.POWER CONSPN

OPEN CYCLE : 1 %

COMBINED CYCLE : 3 %

HEAT RATE

OPEN CYCLE : 2900 KCAL/KWH

COMBINED CYCLE : 2000 KCAL/KWH

Operation and Maintenance expenses

Normative operation and maintenance expenses shall be as follows, namely:

Gas Turbine/Combined Cycle generating stations:

(Rs. in lakh/MW)

 

Gas Turbine/Combined Cycle generating stations other than small gas turbine power generating stations

Small gas turbine power generating stations

  With warranty spares of 10 years

Without warranty spares

Without warranty spares

2004-05 5.2 7.8 9.46

2005-06 5.41 8.11 9.84

2006-07 5.62 8.44 10.24

2007-08 5.85 8.77 10.65

2008-09 6.08 9.12 11.07

TIME TABLE FOR EXCHANGE OF INFORMATION IN RESPECT OF SCHEDULING

By 10.00 hrs. ISGSs shall advise NRLDC the Station-wise MW and MWh capabilities

By 1100 Hrs. NRLDC shall advise the States / Beneficiaries the Station wise MW & MWh entitlements.

By 1500 hrs. SLDCs/ Beneficiaries shall communicate the Station-wise requisitions and details of bilateral exchanges to NRLDC.

By 1700 hrs. NRLDC shall convey the ex-power plant despatch schedule to each ISGS and net drawal schedule to each State / Beneficiary. The details of unrequisitioned surpluses shall also be intimated.

By 2200 hrs.* ISGSs / States / Beneficiaries shall inform the modifications, if any, for incorporating in the final schedule

By 2300 hrs. NRLDC shall issue the final despatch and drawal schedule.

* Since issuing the final despatch and drawal schedule is a critical activity and considerable time is involved in its preparation and carrying out requisite moderation, if any, it has been agreed to complete this activity by 2100 hrs.

• METERING AND ACCOUNTING:– METERING INSTALLATION,TESTING,OPERATION -MAINTENANCE OF

METERS AND COLLECTION- TRASNSPORTATIONAND PROCESSING OF DATA REQUIRED FOR ACCOUNTING OF ENERGY CHARGES AND AVAILABILITY, FREQUENCY ON 15 MIN BLOCK SHALL BE PROVIDED BY PGCIL/RLDC.

– DATA PROCESSED SHALL BE SUPPLIED BY RLDC TO REB FOR REGIONAL ENERGY ACCOUNTING ON MONTHLY BASIS AND UI CHARGES FOR BILLING ON WEEKLY BASIS.

In case of a generating station, contracting to supply power only to the State in which it is located, the scheduling, metering and energy accounting shall be carried out by the respective State Load Despatch Centre.

Thank You