2 [In the base year, prior to the filing of multi-year ARR cum Tariff petition, the transmission licensee shall 1 For order and formats see R.H.P. dated 6 th April 2011 at p. 210 and R. H.P. dated 5 th November, 2013 at p. 4619.
2 Subs. for “The transmission licensee shall file for the Commission’s approval, on 1st April of the year preceding the first year of the control period or any other date as may be directed by the Commission, a business plan approved by its board of directors. The business plan shall be for the entire control period and shall, inter-alia, contain-”vide Not. no. HPERC/F(5)(3)(1)(Trans) dated 1 st November,2013 published in the R H.P. dated 4 th November, 2013 at p. 4608 to 4616.
Compendium of HPERC Regulations, March 2021 27 file a business plan approved by its board of directors. The business plan shall be for the entire control period and shall, inter-alia, contain -]
(a) Capital Investment Plan: This should be commensurate with load growth and quality improvement proposed in the business plan. The investment plan should also include corresponding capitalisation schedule and financing plan;
The Commission shall approve the system augmentation/ expansion plan submitted by the transmission licensee, based on the load growth forecast/ generation evacuation requirement during the control period. The capital investment plan shall be in conformity with the plans made by the CEA/ CTU/ STU/ distribution licensee.
(b) Capital Structure: The appropriate capital structure of each scheme proposed 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 two 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 mechanism;
(d) Depreciation: Based 1 [on the] useful life of the asset and capitalisation schedules for each year of the control period;
(e) Performance Targets: A set of targets proposed for controllable items such as, availability of transmission system, transformer failure rate, and any other parameters for quality of supply for each year of the control period for the purpose of incentive / penalties. The targets shall be consistent with the capital investment plan proposed by the transmission licensee;
(f) Proposals for Non-tariff: Income with item-wise description and details;
(g) Proposals in respect of income from Other Business;
Other Information: This shall include any other details considered appropriate by the transmission licensee for consideration during determination of tariff.