For the purpose of determination of the State Load Despatch Centre fee and charges, the equity and outstanding debt as determined for the base year by the Commission shall be considered as given. However, for any fresh capitalization of assets, the Commission shall apply a debt-equity ratio of 70:30 on the capitalised amount as proved by the Commission for each year of the control period:
1 Subs. vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P.
dated 27 th November, 2018 at p. 6277-6283 and before its substitution read as under:
“16. Additional Capitalisation.- The capital expenditure incurred or projected to be incurred after the date of commercial operation may, in its discretion, be admitted by the Commission, subject to prudence check:
Provided that any expenditure on acquiring the minor items or the assets like tools and tackles, furniture, air-conditioners, voltage stabilizers, refrigerators, coolers, fans, washing machines, heat convectors, mattresses, carpets etc. brought after the date of commercial operation shall not be considered for additional capitalization for determination of fees and charges.” 14 Compendium of HPERC Regulations, March 2021
Provided that where equity employed is in excess of 30%, the amount of equity for the purpose of determination of fee and charges shall be limited to 30% and the balance amount shall be considered as loan. The interest rate, applicable on the equity in excess of 30% treated as loan, has been specified in regulation 21. Where actual equity employed is less than 30% the actual equity shall be considered.
PART V COMPUTATION OF ANNUAL CHARGES