Minutes of the 3rd meeting of the Implementation Committee on Sharing of ISTS Charges & Losses held on 12th October,

2010 at LDC, ew Delhi

List of participants is enclosed as Annexure-I. 1.0 2.0 Agenda is enclosed as Annexure-II. The implementation committee was briefed about the progress of implementation. Reminders have been issued to all Designated ISTS Customers (DICs) for furnishing required data in desired format at the earliest. Implementing Agency has also issued a notice regarding nodes for furnishing nodal injection and withdrawal. 3.0 Each RLDC briefed the committee about the progress of data furnishing by DICs of their region as below: 3.1 NRLDC informed that the data has not been received from a number of utilities in Northern Region. The data received so far has certain discrepancies which are being taken up with the concerned utilities. It was suggested that the geographical power map may be sought from the DICs for establishing connectivity. The suggestion was accepted by the committee. All network elements of the power system of the country which are at voltage levels 132 kV and above and 110 kV where generators are connected shall form the basic network for the purpose of this regulation. However there are certain States/Union Territories (UTs) which are connected only at 66 kV level. It was agreed that in order to represent these States/UTs in the basic network, technical details of elements connected at 66 kV may be sought. 3.2 WRLDC informed that nearly 70% data has come from the DICs of Western Region. Some states/UTs like Goa, D&D and DNH are yet to furnish any data. The matter is being taken up with the concerned officials of the states. 3.3 SRLDC informed that the data has been submitted by most of the DICs of southern region. SRLDC also conducted joint studies with states to validate the data. All generation upto 110kV level is modelled and wind generation is shown as injection at nearest 220kV node in KPTCL and TNEB. It was suggested that

the wind generation may be shown very near to the actual injection i.e. at 132kV/110kV which is a general practice followed internationally. All the members agreed to the suggestion 3.4 ERLDC and NERLDC informed that all data has been received from the DICs of their region. 4.0 A number of utilities are yet to furnish the date of commercial operation (DOCO) of the existing assets as per the formats for data collection. The committee was in agreement that the information is required and DICs/CTU would furnish the same at the earliest. However in view of stringent timeline for implementation and difficulty in obtaining the exact DOCO, expressed by the representatives from states, it was decided that the year of commercial operation may be provided by the DICs/CTU in case the exact DOCO is not available. 5.0 The Implementation Committee agreed that data collection, compilation,

validation and archival exercise needs to be viewed in a larger perspective and not limited to computation of Point of Connection Charges and losses. It would be helpful in creating an authentic and validated database of network elements and power system for the first time in the country. The Implementation Committee emphasized that the basic network model being created would be useful for several other simulation studies such as assessment of transfer capability and shunt capacitor requirement. In view of the above the members agreed that faithful representation of the physical network and creation of an

accurate database was of utmost importance. 6.0 It was suggested by the implementing agency that the data submitted by the DICs may be validated along with the representative of the DICs to ensure the proper connectivity and correctness of the data. All the members have agreed to the suggestion. 7.0 The basic network for load flow studies would be formed based on the data received form the DICs. The basic network may have a load generation imbalance. In such case, it was suggested that as the certainty in projection of load is greater than the locational availability of generation, load may be kept intact

while generation may be varied for load-generation balance. All the members were in agreement to this suggestion. 8.0 The representative of CERC informed that the order for procurement of software for CERC & NLDC has been placed with IIT-Bombay, Mumbai. The first phase delivery is expected soon. The training for the software is scheduled on 21st and 22nd October 2010 as per the notice issued by CERC. 9.0 As per the decision taken in the last meeting, the procedures to be prepared by CTU were expected by end of September 2010. The representative of CTU informed that the draft procedures are under approval of their management and would be submitted to CERC within a weeks time. Regarding Transmission Service Agreement (TSA), the representative of CERC clarified that the TSA would first have to uploaded on the website of CTU for comments of stakeholders. The revised TSA after incorporating the comments received would be submitted to CERC for approval. It was also suggested that the draft procedures and Revenue Sharing Agreement (RSA) may also be put on the website as all these documents are inter-dependent. 10.0 Harmonization of practices among RPCs for issuance of Transmission accounts has been discussed in last two meetings. In this regard it was suggested that the RPCs may come up with some standard procedures or formats for uniformity in Monthly Transmission Account and Transmission Deviation Account. All RPCs have agreed to the same and informed that a meeting of RPCs would be called within a weeks time for this purpose. 11.0 The issue of handling generating stations having full or substantial merchant capacity was discussed. It was agreed in the last meeting that the members would send their views on the subject. Based on the responses received following solution emerged: 11.1 It is essential to appreciate the process being adopted by the planners and at the same time appreciate the spirit of non-discriminatory open access also.

11.2

LTA is most sacrosanct figure for transmission while PPA is used for scheduling process. Hence Approved Injection shall be Long Term Access plus existing Medium Term Open Access.

11.3

PoC Charge would be applied on Approved Injection MW and neither on Installed Capacity nor on the PPA.

11.4

STOA would be nondiscriminatory and in case the Long Term Access customer avails short term open access, STOA charges are payable. They would get refund subject to the limit of the charges paid for Long Term Access. Moreover the refund amount would be limited to difference in charges payable for the approved LTA quantum and charges payable for contracted power (PPA). The refund shall be on monthly basis.

11.5

The procedure on Billing and Collection which is to be prepared by CTU may take care of procedural aspects related to refund.

Accordingly it was decided that 11.1, 11.2, 11.3 would be incorporated in the revised procedure to be submitted by Implementing Agency to CERC

12.0

Certain issues were raised by the DICs in the capacity building workshop and during the data collection exercise. The issues have been discussed in the meeting and all members have agreed to following clarifications: 12.1 Approved Injection / Approved Withdrawal is the sum of approved long term access and existing medium term open access. 12.2 Forecast Injection/ Forecast Withdrawal is the nodal injection/ nodal withdrawal forecast and reflects the estimated demand/generation (including all type of contracts) of each node of DIC. 12.3 Long Term/Medium Term Power Contracts shall be equivalent to the Power Purchase Agreements (PPA) 12.4 All Inter Regional/Inter State lines are part of ISTS. However for the recovery of cost through this mechanism, only lines above 132 kV would be considered.

12.5

For states where next lower voltage level after 220kV/230kV is 110 kV, all network data upto 110kV may be sought for preparation of basic network.

12.6

For the purpose of load flow studies, dedicated lines owned and operated by generators would also be included in the basic network. However the cost of such lines shall not be recovered through this mechanism.

12.7

YTC of state owned dedicated inter state lines shall not be pooled in this mechanism.

13.0

In view of the likely availability of draft procedures from CTU by next week, the committee has agreed to conduct the second phase capacity building workshop in November 2010.

14.0

As per the decision taken in the last meeting, FAQs were sent to the Sub committee members on 25th September 2010. Based on the responses received, answers to the FAQ were sent to sub committee members on 01st October 2010. The revised FAQ after incorporating the suggestions of sub committee members would be sent to members once again. After review by the sub committee, final version would be uploaded on website.

15.0

All RPCs have been requested to furnish the list of certified non-ISTS lines by first fortnight of October. In this regard SRPC informed that the existing mechanism of recovery of cost of certified non-ISTS lines would be used for next financial year and no new lines are to included. It was suggested that other RPC s may also adopt the mechanism followed by SRPC, if agreed.

16.0

In the last meeting, Implementation Committee agreed to the proposal of procurement of common software for power system studies as the same would facilitate large scale capacity building in the country, common platform for system studies especially for studies related to transmission pricing besides planning & operation. A proposal for common software for power system studies has been received by CTU. CTU agreed to arrange for the procurement subject to approval of CERC and funding from Power System Development Fund (PSDF). A Sub committee was formed by Implementation Committee to look into this proposal and give its recommendation. CTU would send the proposal to the

Managing Committee of PSDF. The following have been nominated as members of the Sub-Committee:

1. Shri Dilip Rozekar, DGM, CTU (Coordinator) 2. Shri Ravinder Gupta, Director, CEA 3. Shri B.S Bairwa, EE, NRPC 4. Shri N.Nimawat, SE, RRVPNL 5. Shri Gunajit Kumar Bhuyan, Manager, SLDC,AEGCL 6. Shri S.R Narasimhan, DGM, WRLDC

17.0

The meeting ended with vote of thanks to the chair.

Agenda for the 3rd Meeting of Implementation committee on Sharing of Inter State Transmission Charges and Losses

1. Review of the Progress of Implementation 2. Status of Data Submission 3. Procurement of PoC Computation software 4. Progress of procedure preparation by CTU 5. Harmonization in Issuance of Transmission Accounts 6. Handling IPPs having full or substantial merchant capacity 7. Clarifications on Certain Issues 8. FAQ 9. Certification of non-ISTS lines by RPCs 10. 11. Review of Timeline Any Other Issue