(1) The Commission shall approve capital investment plan of the licensees for the control period commensurate with load growth, rural electrification, system extension, distribution loss reduction and quality improvement proposed in the business plan.
(2) The distribution licensee shall be required to take scheme wise approval for capital investment for creation of new assets at 33 kV and above, but for creation of new assets below 33 kV and network augmentation approval will be required as block of scheme.
(3) Capital investment plan submitted by the licensee shall also provide details of ongoing projects that will spill into the control period and new projects for creation of new assets at 33 kV and above that will commence during the control period but may extend beyond the control period.
(4) The investment plan shall be scheme-wise and with respect to each circle/scheme shall include-
(a) purpose of investment (i.e. replacement of existing assets, meeting load growth, technical loss reduction, non-technical loss reduction, meeting reactive energy requirements, customer service improvement, improvement in quality and reliability of supply, etc) ;
(b) Capital Structure;
(c) Capitalisation Schedule;
1 [(d) Financing plan showing the details for funding of the proposed investment i.e. through loan from financial institutions, equity grants and subsidies and consumer contribution, if any, for the specific work and utilization of other capital receipts as per provisions of HPERC (Recovery of Expenditure for Supply of Electricity) Regulations, 2012;]
(e) Cost-benefit analysis; and
(f) Improvement in operational efficiency envisaged in the control period, etc.
(5) For the Annual Performance Review, the distribution licensee shall submit the actual capital expenditure incurred and capitalisation during the year under review along with the Annual Performance Review Filing.
1 Subs. vide Not. No. HPERC/F(5)(3)(1)(Retail) dated 1 st November, 2013 published in the R.H.P.
dated 4 th November, 2013 at p. 4579 – 4596 and before its substitution Clause (d) as under:
“(d) Financing Plan; ’’ 10 Compendium of HPERC Regulations, March 2021 1 [(6) The Commission may review the capital expenditure incurred and capitalization at the end of each year of the control period vis-à-vis the approved capital expenditure and capitalization schedule. In the normal course, the Commission shall not revisit the approved capital investment plan (capital expenditure and the capitalization schedule) on yearly basis during the control period and adjustments to depreciation, interest on capital loan and return on equity on account of variations for the actual capital expenditure incurred and capitalization made vis-à-vis approved capital investment plan (capital expenditure and capitalization), shall be done during the mid-term performance review and at the time of end of control period true up.]
(7) In case the capital expenditure is required for emergency work which has not been approved in the Capital Investment Plan, the licensee shall submit an application, containing all relevant information along with reasons justifying emergency nature of the proposed work, seeking approval by the Commission. The licensee shall take up the work prior to the approval of the Commission provided that the emergency nature of the scheme has been certified by its Board of Directors.
2[(8) The licensee shall submit a report for every quarter detailing the progress of the capital expenditure and capitalisation undertaken against that proposed in the Capital Investment Plan, on or before the last Day of the month succeeding the respective quarter for review by the Commission.]