in case no. wberc/oa-262/17-18

ORDER

OF THE

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

IN CASE NO. WBERC/OA-262/17-18

IN REGARD TO THE APPLICATION SUBMITTED BY INDIA POWER

CORPORATION LIMITED (IPCL) FOR APPROVAL OF CAPITAL INVESTMENT

PROPOSAL FOR IMPLEMENTATION OF SCADA SYSTEM AT IPCL'S

DISTRIBUTION AREA COVERING 220/33 KV J K NAGAR SUB-STATION AND

ITS 9 NOS. 33/11 KV DOWNSTREAM SUBSTATIONS IN TERMS OF

REGULATION 2.8.4.1 OF THE WEST BENGAL ELECTRICITY

REGULATORY COMMISSION (TERMS AND CONDITIONS OF TARIFF)

REGULATIONS, 2011, AS AMENDED

PRESENT:

SHRI SUTIRTHA BHATTACHARYA, CHAIRPERSON

SHRI DURGADAS GOSWAMI, MEMBER

DA TED: 16.04.2019

11

I

)

Order of the West Bengal Electricity Regulatory Commission on the application submitted by India Power Corporation Limited (I PCL) for approval of capital investment proposal for implementation of SCAD A system at IPCL's distribution area covering 220/33 kV J K Nagar sub-station and its 9 nos. 33/11 kV downstream substations

Facts in brief:

1.0 India Power Corporation Limited (hereinafter referred to as 'IPCL') submitted an

application on 21.09.2017 for approval of capital investment proposal for

implementation of SCADA system in their distribution area covering 220/33 kV J K

Nagar sub-station and 9 nos. 33/11 kV downstream substations. IPCL has submitted

the application in terms of regulation 2.8.4.1 of the West Bengal Electricity Regulatory

Commission (Terms and Conditions of Tariff) Regulations, 2011, as amended

(hereinafter referred to as the 'Tariff Regulations')

2.0 In the said application IPCL has stated that they have planned to minimize deviation in

power drawl and to achieve operation automation.

2.1 It is also stated in the said application that IPCL tries to comply with the clause 5.4.12

of National Electricity Policy, clause 5.4.2(c) of Indian Electricity Grid Code

Regulations, 2010 and clause 4.1.3 of West Bengal Electricity Regulatory Commission

(State Electricity Grid Code) Regulations, 2007 which emphasise on implementation

of such facility in Distribution Licensee area to maintain grid stability.

2.2 In the said application it is also stated that the following issues have been the basis of

the decision of installation of SCADA:

a) The deviation in power drawl has to be minimized and brought under the

threshold to avoid any penalties for under drawl and / or over drawl, This will

result in savings;

b) Monitoring of power flow in real time will enable in time load transfers thus reducing abnormal loading conditions;

c) Automation in operation will lead to reduce down time in case of system

breakdowns and thus will result in increased sales;

d) Provisions to comply with direction given by CERC in its order dated 31.12.2015 in the matter of non-compliance of Regulations 5.4.2(d) of the Central Electricity

Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010.

2.3 It is further stated that as the demand of power supply is increasing day by day, reinforcement of transmission and distribution capacity by way of planning for new

substations and network has become the need of time. And to improve overall 2

West Bengal Electricity Regulatory Commission

Order of the West Bengal Electricity Regulatory Commission on the application submitted by India Power Corporation Limited (I PCL) for approval of capital investment proposal for implementation of SCAD A system at IPCL's distribution area covering 220/33 kV J K Nagar sub-station and its 9 nos. 33/11 kV downstream substations

efficiency of power system by optimizing, controlling and supervising, SCADA system

needs to be implemented.

2.4 It is also stated that such investment will finally lead to following advantages :

a) Improvement of supply availability;

b) Improvement in feeder reliability indices - SAIFI, SAIDI, CAIDI;

c) Competitive edge over other parallel licensees in their area, as response time to

resolve any consumer issue can be much faster than other players in the same

field due to SCADA, which will help to do preventive and proactive monitoring and

make them move from reactive to pro-active customer support services;

d) Monitoring the complete network system on a real time basis, from HQ & central

office as per need;

e) Ensure Regulatory compliance;

f) Reduce the power purchase cost by almost additional 50 paisa / unit in 220 kV;

g) Reduction in value of loss of load by facilitation of more stable electricity supply

after implementing SCADA system and

h) Optimization of distribution network.

3.0 After admission of the application along with petitioner's subsequent submission on

26.10.2018 by the Commission, IPCL was directed to publish the gist of their application as approved by the Commission in the newspapers. IPCL accordingly published the gist of the application in three daily newspapers, namely, The Telegraph (English), the Bartaman (Bengali) and the Sanmarg (Hindi) on 04.02.2019 inviting suggestions and objections on their application. No suggestion and objection

have been received by the Commission within the stipulated time period.

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Order of the West Bengal Electricity Regulatory Commission on the application submitted by India Power Corporation Limited (I PCL) for approval of capital investment proposal for implementation of SCADA system at IPCL's distribution area covering 220/33 kV J K Nagar sub-station and its 9 nos. 33/11 kV downstream substations

Observations of the Commission:

4.0 The petitioner has submitted the Detailed Project Report (DPR). The break-up of the

estimated project cost as per the said DPR is indicated below:

SI Particulars Cost (Rs

no Cr.)

1 SCADA phase - I 6.94

2 SCADA phase - II 5.61

3 Construction of control room 0.97

for SCADA system at J K

Nagar sub-station.

4 Taxes & Duties 0.81

5 Total cost 14.33

5.0 The break-up of the above costs was not available in the DPR submitted by IPCL. On

query, the same has been submitted by IPCL vide letter dated 21.09.2019.

Order:

6.0 The Commission after careful consideration of the facts stated and the documents

submitted by IPCL and also the information submitted subsequently as sought for,

accords in-principle clearance for investment of Rs. 1428.08 lakhs excluding IDC for

implementation of SCADA system at IPCL's distribution area covering 220/33 kV J K

Nagar sub-station and its 9 (nine) 33/11 kV downstream substations. The item wise

costs are given in Annexure - I to this order.

7. 0 It is further ordered that :

i) On completion of the project IPCL shall submit a complete report and a cost

benefit analysis of the project separately before the Commission;

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Order of the West Bengal Electricity Regulatory Commission on the application submitted by India Power Corporation Limited (IPCL) for approval of capital investment proposal for implementation of SCADA system at IPCL's distribution area covering 220/33 kV J K Nagar sub-station and its 9 nos. 33/11 kV downstream substations

ii) Original project cost is required to be approved in terms of Regulation 2.8.5 of

the Tariff Regulations. Commission may disallow any part of project cost on

capitalization over and above the approved cost if it finds the justifications

furnished are not adequate;

iii) In case of escalation in project costs, IPCL shall take due approval from the

Commission before capitalization of assets;

iv) The cost related to maintenance of the SCADA system for initial three year from

the date of commissioning of the complete SCADA system shall not be claimed

in tariff for the said period as the project cost includes 3 years maintenance of

the total SCADA system.

8.0 The application is thus disposed of. Let a copy of the order be served upon IPCL.

Sd/ (DURGADAS GOSWAMI)

MEMBER

Sd/- (SUTIRTHA BHATTACHARYA)

CHAIRPERSON

Dated: 16.04.2019 rti .. : ,, .. l, op , .e 11 ,.. ~, .,..J),ii\0\

(T. K. ~JtE~ / SECRETARY

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Order of the West Bengal Electricity Regulatory Commission on the application submitted by India Power Corporation Limited (IPCL) for approval of capital investment proposal for implementation of SCADA system at IPCL's distribution area covering 220/33 kV J K Nagar sub-station and its 9 nos. 33/11 kV downstream substations

ANNEXURE-1 ABSTRACT COST ESTIMATE

FOR INSTALLATION OF SCAD SYSTEM AT IPCL'S DISTRIBUTION AREA COVERING 220133 KV J.K. NAGAR SIS AND ITS 9 NOS. 33111 KV DOWNSTREAM SUBSTATIONS

SI. Description Amount No. (In lakh) A Survey

1 For design-engg., drawing, documentation & exact quantification of equipment 1.99 & accessories for complete communication system

2 For design-engg., drawing, documentation & BOQ of equipment of 33/11 kV 1.66 substation.

3 Survey & design-engg. Of complete SCADA of ALDC and submission of 26.45 functional desicn specification.

B Supply of materials 1 Supply of complete communication system 54.87 2 Supply of electrical equipment for SCADA compatibility of 33/11 kV s/stn. 697.12 3 Supply of complete SCADA system

a SCADA system for ALDC master monitoring & control centre at JK Nagar 181.90 s/stn

b SCADA system for individual 9 nos. 33/11 kV Substations 108.14 C SCADA system for remote monitoring & control centre at IPCL HO 3.65

d SCADA system for remote monitoring & control centre at IPCL, central office, 3.65 sanctoria

C Service: Installation, Testing & Commissioning 1 Installation of complete system for communication 2.49 2 Service for upgradation of 33/11 kV substations to make SCADA compatibility 56.70 3 Installation of complete SCADA system 63.98 4 Testing & Commissioning of communication system 0.36 5 Testing & Commissioninq of complete SCADA system 0.36

D Demonstration & training of the complete communication and SCADA 6.42 system

E AMC 1 AMC for communication system for three years 6.98 2 AMC for SCADA system for three years 37.51

F Set up of Control room building at JK Nagar Substation 1 Civil & architectural work for 2na floor control room building 73.68 2 Illumination of 2na floor control room building 15.29 3 Air Conditioning of 2na floor control room buildinq 8.49 G Total (A+B+C+D+E+F) 1351.68 H Tax 76.40

Total (G+H) 1428.08

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in case no. wberc/oa-262/17-18

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