CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Coram: Dr. Pramod Deo, Chairperson Shri R. Krishnamoorthy, Member Shri S. Jayaraman, Member Shri V.S. Verma, Member No.–L-1/(3)/2009-CERC Date: 31st December, 2009 In the matter of Approval of Detailed Procedures of Central Transmission Utility under Regulation 27 (1) of the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009. ORDER Sub-section (1) of Regulation 27 of Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 (Open-access Regulations) provides as under: “27. Detailed Procedure (1) Subject to the provisions of these regulations, the Central Transmission Utility shall submit the detailed procedure to the Commission for approval within 60 days of notification of these regulations in the Official Gazette: Provided that prior to submitting the detailed procedure to the Commission for approval, the Central Transmission Utility shall make the same available to the public and invite comments by putting the draft detailed procedure on its website and giving a period of one month to submit comments; Provided further that while submitting the detailed procedure to the Commission, the Central Transmission Utility shall submit a statement indicating as to which of the comments of stakeholders have not been accepted by it along with reasons thereof.” 2. The Central Transmission Utility in its Letter No. C\ENG\SEF\CERC dated 9.11.2009 has submitted the draft “Detailed Procedure on grant of Connectivity, Long-term Access & Medium-term Open Access” along with the statement containing the comments of the stakeholders. 3. We hereby approve the Detailed Procedures titled “Procedure for making application for grant of connectivity in ISTS” in exercise of our power vested under Regulation 27 (1) of the Open-access Regulations. The approved Procedure is enclosed as Annexure to this order. 4. We direct the Central Transmission Utility to give wide publicity to the Procedure for the information of and compliance by all concerned. 5. In terms of Regulation 1 (2) of the Open-access Regulations, we direct that the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter- State Transmission and related matters) Regulations, 2009 shall come into force w.e.f. 1.1.2010. The Secretary of the Commission is directed take necessary action for issue of notification to that effect. 6. We also direct the CTU to operationalise the procedure as per Annexure to this order w.e.f. 1.1.2010. -sd/- -sd/- -sd/- -sd/- [V. S. Verma] [S. Jayaraman] [R. Krishnamoorthy] [Dr. Pramod Deo] Member Member Member Chairperson Procedure for making application for Grant of Connectivity in ISTS ANNEXURE (Para 3 of Order No.-L-1/(3)/2009-CERC Dated: 31st December, 2009) PROCEDURE FOR MAKING APPLICATION FOR GRANT OF CONNECTIVITY IN ISTS 1. OUTLINE 1.1 This Procedure is in accordance with the various provisions of the “Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 hereinafter referred to as “the Regulations”. All applicants shall abide by the provisions of the Regulations. 1.2 This Procedure shall apply to the Applications made for Grant of Connectivity to the transmission lines or associated facilities of the inter-State transmission system (ISTS), received by the Central Transmission Utility (CTU) on or after the date notified by the Commission of coming into force of the Regulations. 1.3 Application for grant of connectivity can be made by :- 1.3.1 A Generating station of installed capacity 250 MW and above, including a captive generating plant of exportable capacity of 250 MW and above. 1.3.2 A bulk consumer who intends to avail supply of a minimum load of 100 MW from the Inter-State Transmission System. 1.4 The applicant (Generator/bulk consumer) already connected to grid (regional or state grid) or for which connectivity is already granted under the present arrangement, shall not be allowed to apply for additional connectivity for the same capacity. In case of extension of capacity of generator or bulk consumer, however, it shall be required to make application for connectivity as per the provisions of these procedures. 1.5 The nodal agency for grant of Connectivity, Long-term access and Medium-term open access to the inter-state transmission system shall be the CTU i.e. Power Grid Corporation of India Limited (POWERGRID). 1.6 Applicant granted “Connectivity” will be required to sign “Connection Agreement” with CTU prior to the physical inter-connection. In case the connectivity is granted to the ISTS of an inter-State transmission licensee other than the CTU, a tripartite Page 1 of 130 Procedure for making application for Grant of Connectivity in ISTS agreement shall be signed between the applicant, the Central Transmission Utility and such inter-State transmission licensee, in line with the provisions of the Regulations. After signing of the Agreement, Nodal Agency will provide a copy of the same to concerned SLDC/RLDC. 1.7 The scheduling jurisdiction and procedure, metering, energy accounting and accounting of Unscheduled Interchange (UI) charges would be as per the relevant CERC Regulations and the Indian Electricity Grid Code, as amended from time to time. 1.8 The applicant shall have to comply with the provisions of the Regulations. 2. INFORMATION REQUIRED TO BE SUBMITTED WITH THE APPLICATION FOR CONNECTIVITY BY GENERATING STATION 2.1 In order to assess preparedness of applicant making application for the connectivity to the ISTS, an applicant is required to submit along with its application, documents in support of having initiated specific actions for project preparatory activities in respect of matters mentioned in (i) to (v) below. i) Site identification and land acquisition: The applicant shall inform land required for the generation project along with extent to which the same have been acquired and taken possession of. The “Requirement” of land would be considered as indicated in the proposal filed with the competent authority for seeking environmental clearance. In case of land to be acquired under the Land Acquisition Act 1894, the applicant shall submit copy of notification issued for such land under Section 4 of the Land Acquisition Act 1894. In all other cases, the applicant shall furnish documentary evidence in the form of certificate by concerned and competent revenue / registration authority for the acquisition / ownership / vesting of the land. ii) Environmental clearance for the power station: The applicant shall have to inform status on submission of requisite proposal, for the environmental clearance, to the concerned administrative authority (first level submission). iii) Forest Clearance (if applicable) for the land for the power station: The applicant shall have to inform status on submission of requisite proposal, for the forest clearance, to the concerned administrative authority (first level submission). iv) Fuel Arrangements: Details on fuel arrangements shall have to be informed for the quantity of fuel required to generate power from the power station for the total Page 2 of 130 Procedure for making application for Grant of Connectivity in ISTS installed capacity intended for connectivity. v) Water linkage: The applicant shall inform the status of approval from the concerned state irrigation department or any other relevant authority for the quantity of water required for the power station. These evidences shall be supported by a sworn in affidavit by the generation project developer as per the format given at FORMAT-CON-1. 3. SUBMISSION OF APPLICATION 3.1 The application for Grant of Connectivity to ISTS should be submitted in a sealed envelope with “Application for Grant of Connectivity” clearly marked on the envelope. The application shall be addressed to Executive Director (SEF & CE) Power Grid Corporation of India Limited Saudamini, Plot No. – 2, Sector – 29 Near IFFCO Chowk Gurgaon – 122 001 Haryana Fax: 0124 – 2571809 3.2 The application for Grant of Connectivity to ISTS shall be made as per the application format for connectivity and shall contain details such as, geographical location of the generation project, unit-wise commissioning schedule, etc. [FORMAT-CON-2 : Application shall be accompanied by a non-refundable fee as specified in the Regulations i.e. 3.3 “Application for Grant of Connectivity”]. Sl. Quantum of Power to be injected/offtaken into/from Non-refundable ISTS Application Fees (Rs. Lakhs) 1 Upto 100 MW 2 2 More Than 100 MW and upto 500 MW 3 3 More Than 500 MW and upto 1000 MW 6 4 More than 1000 MW 9 Page 3 of 130 Procedure for making application for Grant of Connectivity in ISTS 3.4 Application fees are to be paid through DD or directly credited to POWERGRID Account electronically through RTGS (Real-time gross settlement) as per details given below: a) Payee : Power Grid Corporation of India Ltd b) Name of Bank : State Bank of Hyderabad c) Branch : Kundan House, Nehru Place, New Delhi – 110 019. d) IFSC : SBHY0020347 e) A/c No. : 52045247178 Provided that proof of payment directly credited to above POWERGRID account must be attached with the application. 3.5 All applications received during the month shall be treated to have been made concurrently. 3.6 An incomplete Application, and/or an Application not found to be in conformity with these Procedures and Regulations, shall be rejected. 4. CHANGES TO THE APPLICATION ALREADY MADE 4.1 Any material change in the location of the generation project/drawl point or change (by more than 100 MW) in the quantum of power to be interchanged with the inter- State transmission system shall require filing of fresh application along with applicable fees and the already filed application shall be considered disposed and application fee shall be forfeited. 4.2 If any applicant has already been granted connectivity but the process of construction by the CTU or inter-State licensee other than the CTU has not yet started and the applicant subsequently applies afresh with material changes or change (by more than 100 MW) in the quantum of power to be interchanged as provided above in para – 4.1, then the already granted connectivity shall stand cancelled. 4.3 Application for any minor changes, i.e. material change in location or change in installed capacity of upto 100 MW)shall have to be submitted in the same application format [FORMAT-CON-2: “Application for Grant of Connectivity”] marking Revision no. - X (X=1 for first revision and so on for subsequent changes, if any). 5. GRANT OF CONNECTIVITY 5.1 On receipt of the application, the CTU shall, in consultation and through coordination with other agencies involved in inter-state transmission system to be used, including State Transmission Utility, if the State network is likely to be used, process the application and Page 4 of 130 Procedure for making application for Grant of Connectivity in ISTS carry out the necessary inter-connection study as specified in the Central Electricity (Technical Standards for Connectivity to the Grid) Regulations, 2007. 5.2 The intimation for grant of connectivity shall be communicated to the applicant within 60 days from last day of the month in which the application has been received as per FORMAT-CON-3. 5.3 Applicant given intimation for Connectivity to the grid shall have to furnish additional details to CTU for signing of “Connection Agreement” as per format given at FORMAT- CON-4, These details are to be furnished to CTU at least 2 (two) years prior to physical interconnection, unless otherwise indicated by CTU. The Applicants are, however advised to furnish such details as early as possible for enabling them have lead time for any type of access. 5.4 The CTU will process the above information and will intimate the Connection details as per format given at FORMAT-CON-5. Pursuant to such Connection details, the applicant shall have to sign “Connection Agreement” with CTU prior to the physical inter- connection as per format given at FORMAT-CON-6. In case the connectivity is granted to the ISTS of an inter-State transmission licensee other than the CTU, a tripartite agreement shall be signed between the applicant, the Central Transmission Utility and such inter- State transmission licensee, in line with the provisions of the Regulations. After signing of the Agreement, Nodal Agency will provide a copy of the same to concerned SLDC/RLDC. 6. INTERCHANGE OF POWER WITH THE ISTS 6.1. The grant of connectivity shall not entitle an applicant to interchange any power with the grid unless it obtains long-term access, medium-term open access or short-term open access. 6.2. However, generating station, including captive generating plant, which has been granted connectivity to the grid shall be allowed to undertake interchange of power including drawal of power for commissioning activities and injection of infirm power in to the grid during full load testing before being put into commercial operation, even before availing any type of open access, after obtaining permission of the concerned Regional Load Dispatch Centre, which shall keep grid security in view while granting such permission. This infirm power from a generating station or a unit thereof, other than those based on non-conventional energy sources, the tariff of which is determined by the Commission, will be governed by the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009. The power injected into the grid from other generating stations during such testing shall also be charged at UI rates. Page 5 of 130 Procedure for making application for Grant of Connectivity in ISTS 6.3. The Generating Station including Captive Generating Station shall submit likely date of synchronization, likely quantum and period of injection of infirm power before being put into commercial operation to the SLDC and RLDC concerned at least one month in advance. 7. CONSTRUCTION OF DEDICATED TRANSMISSION SYSTEM 7.1. An applicant may be required by the CTU to construct a dedicated system to the point of connection to enable connectivity to the grid which shall be owned, operated and maintained by the applicant. 7.2. However, a thermal generating station of 500 MW and above and a hydro generating station of 250 MW and above, other than a captive generating plant, shall not be required to construct a dedicated line to the point of connection and such stations shall be taken into account for coordinated transmission planning by the CTU and CEA. 7.3. In all the cases where dedicated transmission system up to point of connection is to be undertaken by CTU / Inter-State Transmission licensee, the applicant after grant of connectivity shall sign transmission agreement as per the format given at FORMAT- CON-8 within one month of the grant of connectivity. Further applicant shall furnish Bank Guarantee (BG) for the amount EITHER (a) at the rate of Rs. 2.5 lakhs/MW (or such amount as amended from time to time, with the approval of the Commission)) if the connectivity requires transmission lines upto 20 kms OR (b) at the rate of Rs. 5 lakhs/MW (or amount as amended from time to time in the Regulations if the connectivity requires transmission lines more than 20 kms. The BG as per format given at FORMAT-CON-7 should be made in favour of CTU / Transmission licensee within one month of signing of transmission agreement with validity upto commissioning of above transmission system. In case application for Grant of Connectivity and Grant of Long Term Access are made concurrently or after a time gap, then the requirement of submission of above BG should be read in conjunction with the clause for Bank Guarantee of Rs. 5 lakhs per MW for construction/augmentation of transmission system under “Procedure for Grant of Long Term Access”. In such cases the total BG required to be submitted for both the construction of dedicated line as well as for augmentation of transmission system together, at any time, shall not exceed Rs. 5 Lakhs per MW. . The time frame for commissioning of above dedicated transmission system from the signing of BPTA would be 9 months plus the time lines as specified by CERC in tariff Page 6 of 130 Procedure for making application for Grant of Connectivity in ISTS regulations or actual date of commissioning desired by the applicant and agreed to by the CTU, whichever is earlier. 7.4. If dedicated line is to be constructed and terminated by the applicant as per the Connection Agreement, the modifications at the connection point required to be under taken by CTU would be undertaken on deposit of estimated cost by applicant. In this case there shall be no requirement of BG. 7.5. Provided further that if the dedicated transmission system is also used by any other user(s) at a later date, then the transmission charges for above dedicated transmission system would be shared in proportion to the quantum of power injected by respective user into the grid, as per the system in vogue at that time. 8. GENERAL 8.1. The applicant shall keep the nodal agency and RLDC/NLDC indemnified at all times and shall undertake to indemnify, defend and keep the nodal agency, RLDC/NLDC harmless from any and all damages, losses, claims and actions including those relating to injury to or death of any person or damage to property, demands, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from such grant of connectivity. 8.2. All costs/expenses/charges associated with the application, including bank draft, bank guarantee etc. shall be borne by the applicant. 8.3. The applicant shall abide by the provisions of the Electricity Act, 2003, the CERC Regulations and Indian Electricity Grid Code , as amended from time to time. 8.4. This procedure aims at easy and pragmatic disposal of applications made for Connectivity to ISTS. However, some teething problems may still be experienced. The various implications would be known only after practical experience is gained by way of implementing these procedures. In order to resolve the same, this procedure shall be reviewed or revised by the Nodal agency with prior approval of CERC. 8.5. All complaints regarding unfair practices, delays, discrimination, lack of information, supply of wrong information or any other matter related to grant of connectivity to ISTS shall be directed to CERC for redressal. Page 7 of 130