The Power System Operation Company shall file for the Commission’s approval, a business plan approved by its Management as per the timelines specified in Appendix-I to these regulations. The business plan shall be for the entire control period and shall, inter-alia, contain.-
(a) Capital expenditure (CAPEX) plan: This should be commensurate with load growth and quality improvement proposed in the business plan. The capital expenditure plan should also include corresponding capitalisation schedule and financing plan;
(b) The appropriate capital structure and cost of financing (interest on debt) and return on equity, terms of the existing loan agreements, etc;
(c) Operation and Maintenance (O&M) Expenses: This shall include the costs estimated for the base year, the actual expenses incurred in the previous years and the projected values for each year of the control period based on the proposed norms for O&M cost, including indexation and other appropriate mechanisms;
Compendium of HPERC Regulations, March 2021 9
(d) Depreciation: This shall include the depreciation schedule based on the useful life of the asset and capitalisation schedules for each year of the control period;
(e) Other Information: This shall include any other details considered appropriate by the Power System Operation Company for consideration during determination of fees and charges.
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