(1) The generating company shall file for the Commission’s approval, 2 [“during”] 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, interalia, contain –
(a) Capital Investment Plan: This shall include details of the investments planned by the generating company, alongwith the corresponding capitalisation schedule and financing plan. This plan shall be commensurate with capacity enhancement and proposed efficiency improvements for various plants of the company;
(b) Capital Structure: The generating company shall submit plant-wise details of the capital structure and cost of financing (interest on debt and return on equity), after considering the existing market conditions, terms of the existing loan agreements, risks associated in generation business and creditworthiness;
(c) Operation and Maintenance (O&M) expenses: This shall include the costs estimated for the base year, the actual expenses incurred in the previous five years and the projected values for each year of the control period based on the proposed norms for O&M cost;
(d) Depreciation: This shall include details of depreciation based 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 other controllable items such as auxiliary consumption, NAPAF. The targets shall be consistent with the capital investment plan proposed by the generating company;
(f) Other Information: This shall include any other details considered appropriate by the generating company for consideration during determination of tariff.
(2) The applicant shall also submit the multiyear tariff filing in electronic format to the Commission.” 1 For order and form see R.H.P. dated 6 th April, 2011 at p. 211and R.H.P. dated 4 th Nov., 2013 at p.
4606-4608.
2 Subs. for “on 1 st April of” vide Not No. HPERC/F (5)(3)(1) (Gen.) dated 1 st Nov., 2013 published in the R H.P. dated 4 th November, 2013 at p. 4599-4606.
Compendium of HPERC Regulations, March 2021 27 1 [37. Aggregate Revenue Requirement (Multi-year and MPR) and tariff filing during the control period.- (1) The generator /generating company shall file not less than 120 days before the commencement of the first year of the control period or such other date as may be directed by the Commission, an application for approval of multi-year Aggregate Revenue Requirement (ARR) and determination of tariff for each year of the control period.
(2) To address any mid-term changes on account of unexpected outcomes, the Commission shall undertake mid-term performance review of generating company’s performance for the year after the mid year of the control period;
(3) The generation company shall make a petition/application for mid-term performance review on the controllable / uncontrollable factors not less 120 days before the commencement of the year after the mid year of the control period as per principles laid down as follows:-
(a) In the mid-term performance review, the Commission shall make a comparison of the actual performance and expected revenue from tariff and charges vis-à-vis that approved in the first year of the Control period and the generation company shall submit to the Commission all information together with audited account statements, extracts of books of account and such other details in such form and in such manner as may be laid down by the Commission by an order and also as per the provisions of the Conduct of Business Regulations. The mid-term performance review shall comprise of the following:-
(i) true-up of previous control period;
(ii) true-up of previous years of control period for which audited accounts are made available by the generator company;
(iii) review of ARR for the balance years of the control period in case of an major change in uncontrollable and/ or controllable parameters;
(iv) review of generation tariff on account of modification in ARR for the balance years of the control period.
(4) The generator/generation company shall furnish to the Commission, such additional information, particulars and documents as the Commission may require from time to time after such filing of revenue calculations and tariff proposals.
(5) The generator/generation company shall publish, for the information of the public, the contents of the application in an abridged form in such manner as the Commission may direct and shall host the complete copy of the filing on its website and shall also provide copies of the documents filed with the Commission to any person at a price not exceeding normal photocopying charges.
Provided that the during the MPR, the Commission may revise the trajectories for various controllable parameters for the remaining period of the control period and this shall 1 Subs. vide Not No. HPERC/F (5)(3)(1) (Gen.) dated 1 st Nov., 2013 published in the R H.P. dated 4 th November, 2013 at p. 4599-4606 and before its substitution it stood as under:
“37. Tariff Filing The applicant shall file the application for approval of generation tariff for each year of the control period consistent with the business plan, not less than 120 days before the commencement of the first year of the control period or such other date as may be directed by the Commission.” 28 Compendium of HPERC Regulations, March 2021 be deemed to give consequential effect to the ARR approved in the first year of the control period.]