APERC Scales Down APTRANSCO's Forecast, Procurement Plans

Hyderabad, July 30: | Updated: Jul 31 2002, 05:30am hrs
The Andhra Pradesh government's ambitious plan to have surplus power in the next seven years has suffered a setback with the AP Electricity Regulatory Commission (APERC) sharply scaling down the AP Transmission Corporation (APTRANSCO)'s power forecast and procurement plans.

After taking into consideration the demand forecast, supply expansion plan, fuel availability and the huge costs involved while adding up additional MW, APERC has revised the capacity requirement to 3180 MW as against the

APTRANSCO's demand of 4270 MW for the period between 2000-01 and 2006-07.

The commission, after going through the issues of huge cost, public money and time factor, took the decision and passed an order to this effect on Monday, said Mr T B Narasimha Rao, secretary, APERC here on Tuesday.

Addressing the press conference, Mr Rao, said the commission has revised the load forecast submitted based on the historic trends (6.8 per cent growth rate) and has also provided an additional 300 MW for meeting the existing deficit as against 7.38 per cent growth rate project by APTRANSCO.

Pvt Promoters Asked To Revise PPAs

Having scaled down the forecast and procurement plans of APTRANSCO, the AP Electricity Regulatory Commission has asked the three private power producers ie., BPL, BSES and RTPP to modify the power purchase agreements (PPAs) with APTRANSCO so as to start the projects at the earliest. APERC secretary T B Narasimha Rao said though the commission has, in principle, agreed to clear these three PPAs, the promoters of these projects should incorporate some modifications as suggested by APERC. The modified PPAs should be submitted again to APERC for further scrutiny, he said.

The commission has asked the promoters of these projects to adhere to the APERC suggestions and ensure the firm fuel tie-up for natural gas, tariffs should be computed based on the price of natural gas prevailing on date, removal of clauses relating to escrow account, reduction of foreign exchange component, modifying interest rates and link to Libor, finalisation of coal
supply transport methods and agree to a PLF of 80 per cent during the entireperiod of PPA.

These points have to be incorporated in the revised PPAs by the promoters of these projects keeping in mind the customer benefits, uncertainty tariffs, risks involved in foreign exchanges, avoiding delay in fuel transportation, retaining the same tariff despite the changing to alternate fuel, etc, Mr Rao pointed out.

The commission has adopted 70 per cent load factor for system planning as against licensee's assumption of 65 per cent. It also directed APTRANSCO to consider the prospects of Sri Sailam left bank not contributing to the system peak, said Mr Rao.

APTRANSCO was directed to consider all the projects including NTPC Talcher and Ramagumdam, CC-5, NEDCAP and mini power plants in drawing up least cost plan from the point of view of a least cost option, Mr Rao further said.

The APTRANSCO need to revise the supply plan based on this order and the commission would consider PPAs pending before it for public hearing once they appear with the revised supply plan, he said.