Thursday, March 14, 2013

FSA -APCPDCL Calculation Methodology

FSA -APCPDCL Calculation Methodology


CENTRAL POWER DISTRIBUTION COMPANY OF A.P.Ltd

EXPLANATORY  NOTE  FOR  THE  FSA  FILINGS  MADE  BY  DISCOM
FOR FY 2008-09 & 2009-10:

METHODOLOGY APPLIED:

As per the methodology envisaged vide AP Gazette no.30. dt.17.07.2003 the FSA
is to be computed as per the formula given below.
   
 Fi (FSA)  = (Pi X Ei+ FCi + Z+ Ai)/Qi.
 
  The  amount  eligible  for  recovery  through  the  Fuel  Surcharge  Adjustment
formula is for the price and mix variance in the quantity of energy to be purchased as per
the  tariff  order  during  quarter  ‘i’.  This  is  to  be  computed  for  each  of  the  month  and
aggregated for the quarter ‘i’
Where,
Pi  is  the  difference  in  the  Weighted  Average  Variable  Cost  of  power
purchase cost in quarter ‘i’ for the power purchase quantity mentioned
in  the  tariff  order  compared  to  the  Weighted  Average  Variable  Cost
adopted in the most recent Tariff order.
Ei is the energy purchased as mentioned in the tariff order in Kwhr during
the quarter to be submitted for each of the generating stations.
Fci  is  Difference  in  the  Actual  total  fixed  charges  of  the  generating
stations from the base values adopted in the most recent tariff order.
Qi  is  the  actual  energy  sold  to  all  categories  (except  agriculture)  in  the
quarter
Z  is  the  changes  in  the  cost  as  allowed  by  the  Commission  for  a  period
extending in the past beyond the relevant quarter .
Ai  Adjustment  is  to  account  for  the  financial  impact  of  demonstrated
incidents of merit order on account of controllable factors or any other
events the financial impact of which, in the commission’s view should
be given appropriate treatment.

Explanatory Note: 

 The category wise actual sales for each of the Discoms are taken for all categories
restricting  Agriculture  sales  to  the  extent  of  actual  sales  or  APERC  approved
quantities whichever is less on the demand side or sales side by grossing up with
normative  Distribution  and  Transmission  losses.    The  quantities  arrived  are
termed as purchases required to be made for sales by DISCOMs.
 The  merit  order  was  prepared  duly  taking  calculated  power  purchase  quantities
instead  of  Tariff  order  purchase  quantities  wherever  Tariff  Order  quantities  are
more than calculated power purchase quantities considering sales.
 The actual quantity of each generating station is taken as base to calculate actual
rate for each generating station.
 The  fixed  cost  approved  for  each  station  for  the  month  is  taken  to  find  out  the
differential fixed cost to be claimed through FSA.
  The quantities purchased over and above the tariff approved quantities (or) power
purchase  quantities  calculated  based  on  sales  are  excluded  from  the  marginal
stations.
 The  prior  period  expenses  and  incomes  are  for  each  month  are  either  added  or
subtracted from the variance cost (FSA).


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