**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).