POWER GRID CORPORATION OF INDIA LTD., GURGAON Vs. RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD., JAIPUR AND ORS.

JUDGEMENT

(1.) THE petitioner, Power Grid Corporation of India Limited, has filed the instant petition for approval of transmission tariff in respect of the Polymer Insulators installed by it in place of the porcelain insulators on the 400 kV transmission lines in and around the National Capital Region, in accordance with the provisions of Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 (hereinafter referred to as "2009 Tariff Regulations"). The petitioner has submitted that most of the transmission lines of the Northern Region in areas around the National Capital Region are passing through plain terrain and accordingly lines were earlier designed and constructed considering the light pollution level keeping in view the vast agricultural land and scattered industrialization activities. Over the years, pollution levels have increased due to developments taking place in the industrial, automobile and housing infrastructure sectors. As a result of higher pollution level, frequent trippings of Northern Regional transmission lines, especially those passing through polluted areas have been observed under foggy conditions during winter season. The petitioner submitted that despite taking regular maintenance measures including cleaning of insulators in critical stretches every year before winter season, trippings in some of the transmission lines were a matter of concern. On 7.3.2008 and 9.3.2008, a large number of trippings of 400 kV transmission lines took place in the Northern Region affecting power to Delhi and its adjoining areas, as well as the Railways. An emergency meeting was convened by Secretary (Power) to take stock of the situation and to plan for corrective actions to be taken, which was attended by Member (Electrical), Railways, Chairman, CEA, Secretary (Power), Government of Haryana, CMD of NTPC, Director(Projects) of Power Grid and CMD of Delhi Transco Ltd. After detailed deliberations, the following remedial measures among others were decided: -

(2.) THE petitioner has submitted that in accordance with the decision taken in the meeting of Secretary (Power), Chairman, CEA convened a meeting on 30.4.2008. After detailed deliberations, the following decisions were taken: -

(3.) THE petitioner has sought recovery of the expenditure incurred towards replacement of porcelain insulators by polymer insulators by way of tariff, similar to any other normal tariff petition except for the O&M expenses. The petitioner has combined all the new insulators that are being put in to service as a single asset. The petition has been filed under Regulation 5 (2) of the 2009 Tariff Regulations which refers to tariff determination of a transmission project. However, the present petition pertains to a combination of different transmission lines from where the existing porcelain insulators are being taken out and replaced by polymer insulators. The petitioner has submitted that the healthier porcelain insulators (approx 8.12 lakh nos.) will be transferred and installed in the transmission schemes of less polluted stretches of NR and are proposed to be capitalized at zero cost. However, various other costs like transportation, handling, erection etc., are proposed to be capitalized in the respective projects. Approximately 2.5 lakh healthier disc insulators would be utilized in different regions by the petitioner under O&M replacements. The written down value of these insulators shall be booked to the O&M expenses and therefore, the same amount shall be passed on to the NR beneficiaries as credit in the monthly transmission charges billing.