# MERC Maharashtra State Power Generation Co. Ltd. Multi-Year Tariff (MYT) Order for FY2025-26 to FY2029-30 (Case No. 187 of 2024)

- **Issuing authority:** Maharashtra Electricity Regulatory Commission (MERC)
- **Case number:** 187 of 2024
- **Order date:** 28 March 2025
- **Petitioner:** Maharashtra State Power Generation Co. Ltd. (MAHAGENCO)
- **Order type:** Multi-Year Tariff (MYT) Order
- **Control period:** CP-5 (FY2025-26 to FY2029-30)
- **Tariff regime:** Section 62, Electricity Act 2003
- **Length:** 295 pages
- **Official PDF:** https://merc.gov.in/wp-content/uploads/2025/03/Final-MSPGCL-MYT-Order-Case-No.-187-of-2024-.pdf

## Section index

| Section | Title | Page |
|---|---|---|
| 1 | BACKGROUND AND BRIEF HISTORY | 17 |
| 1.1 |  INTRODUCTION | 17 |
| 1.2 |  MYT REGULATIONS | 17 |
| 1.3 |  MYT ORDER FOR 4TH CONTROL PERIOD | 17 |
| 1.4 |  REVIEW ORDER ON MYT ORDER FOR 4TH CONTROL PERIOD | 17 |
| 1.5 |  MTR ORDER FOR 4TH CONTROL PERIOD | 17 |
| 1.6 |  REVIEW ORDER ON MTR ORDER FOR 4TH CONTROL PERIOD | 17 |
| 1.7 |  MYT REGULATIONS 2024 | 17 |
| 1.8 |  MYT PETITION FOR 5TH CONTROL PERIOD | 17 |
| 1.9 |  ADMISSION OF PETITION AND PUBLIC CONSULTATION PROCESS | 22 |
| 1.10 |  ORGANISATION OF THE ORDER | 22 |
| 2 | SUGGESTIONS/OBJECTIONS RECEIVED, RESPONSE OF MSPGCL AND COMMISSION'S VIEWS | 22 |
| 2.1 |  COAL QUALITY AND WASHED COAL | 23 |
| 2.2 |  USAGE OF GP II COAL | 29 |
| 2.3 |  USAGE OF IMPORTED COAL | 32 |
| 2.4 |  RELAXATION OF PERFORMANCE PARAMETERS | 34 |
| 2.5 |  FUEL UTILISATION PLAN (FUP) | 39 |
| 2.6 |  INSTALLATION OF EMISSION CONTROL SYSTEM | 41 |
| 2.7 |  ADDITIONAL CAPITALISATION | 43 |
| 2.8 |  ANNUAL FIXED CHARGES | 48 |
| 2.9 |  GHATGHAR AFC AND LEASE RENT | 51 |
| 2.10 |  OUTSTANDING DUES AND LATE PAYMENT SURCHARGE | 52 |
| 2.11 |  NEW THERMAL GENERATION AND RETIREMENT OF OLD UNITS | 65 |
| 2.12 |  OTHERS | 68 |
| 3 | IMPACT OF OTHER ORDERS | 68 |
| 3.1 |  ORDER IN CASE NO. 132 OF 2023 | 73 |
| 3.2 |  INCORRECT OPENING BALANCE OF GFA, ROE AND INTEREST ON LOAN FOR BHUSAWAL UNITS 4&5 AND KHAPERKHEDA UNIT 5 FOR FY 2019-20 | 73 |
| 3.3 |  INCORRECT RATE OF INTEREST ON LOAN FOR BHIRA HYDRO STATION | 73 |
| 3.4 |  ERRONEOUS COMPUTATION IN CUMULATIVE REVENUE GAP/(SURPLUS) UP TO FY 2022-23 | 75 |
| 3.5 |  IMPACT OF LD AMOUNT OF KORADI UNITS 8-10 | 76 |
| 3.6 |  IMPACT OF UDL OF KORADI UNITS 8-10 | 78 |
| 3.7 |  IMPACT OF LD OF BHUSAWAL UNIT 4 & 5 | 79 |
| 3.8 |  IMPACT OF UDL OF CHANDARPUR UNITS 8-9 AND PARLI UNIT 8 | 81 |
| 3.9 |  EXPENSES NOT CLAIMED IN THE MTR PETITION | 81 |
| 3.10 |  IMPACT OF CHANGE IN LAW DUE TO COAL TOLLING ARRANGEMENT | 82 |
| 4 | FINAL TRUE-UP FOR FY 2022-23 AND FY 2023-24 | 82 |
| 4.1 |  BACKGROUND | 82 |
| 4.2 |  NORMS OF OPERATION | 82 |
| 4.3 |  AVAILABILITY | 84 |
| 4.4 |  PLANT LOAD FACTOR (PLF) | 89 |
| 4.5 |  AUXILIARY ENERGY CONSUMPTION (AEC) | 91 |
| 4.6 |  NET GENERATION | 92 |
| 4.7 |  GROSS STATION HEAT RATE (GSHR) | 94 |
| 4.8 |  SECONDARY FUEL OIL CONSUMPTION (SFOC) | 96 |
| 4.9 |  TRANSIT AND HANDLING LOSS | 96 |
| 4.10 |  GROSS CALORIFIC VALUE (GCV) OF FUELS | 97 |
| 4.11 |  LANDED PRICE OF FUELS | 101 |
| 4.12 |  ENERGY CHARGES | 108 |
| 4.13 |  ADDITIONAL CAPITALISATION | 111 |
| 4.14 |  MEANS OF FINANCE OF ADDITIONAL CAPITALISATION | 111 |
| 4.15 |  ANNUAL FIXED CHARGES (AFC) | 111 |
| 4.16 |  OPERATIONS AND MAINTENANCE (O&M) EXPENSES | 119 |
| 4.17 |  DEPRECIATION | 126 |
| 4.18 |  INTEREST ON LONG-TERM LOANS AND OTHER FINANCE CHARGES | 129 |
| 4.19 |  INTEREST ON WORKING CAPITAL (IOWC) | 132 |
| 4.20 |  RETURN ON EQUITY (ROE) | 136 |
| 4.21 |  NON-TARIFF INCOME (NTI) | 140 |
| 4.22 |  ANNUAL FIXED CHARGES | 144 |
| 4.23 |  HYDRO LEASE RENTAL | 144 |
| 4.24 |  REVENUE GAIN/ (LOSS) DUE TO LOWER/ HIGHER AUXILIARY CONSUMPTION | 145 |
| 4.25 |  INCENTIVE FOR EXCESS HYDRO GENERATION | 146 |
| 4.26 |  REDUCTION IN AFC DUE TO SHORTFALL AGAINST TARGET AVAILABILITY | 149 |
| 4.27 |  REVENUE FROM SALE OF POWER | 149 |
| 4.28 |  SUMMARY OF TRUE UP OF FY 2022-23 AND FY 2023-24 | 150 |
| 4.29 |  OTHER ISSUES TO BE TRUED-UP | 155 |
| 5 | PROVISIONAL TRUE-UP FOR FY 2024-25 | 155 |
| 5.1 |  BACKGROUND | 155 |
| 5.2 |  NORMS OF OPERATION | 156 |
| 5.3 |  AVAILABILITY | 156 |
| 5.4 |  PLANT LOAD FACTOR (PLF) | 158 |
| 5.5 |  AUXILIARY ENERGY CONSUMPTION (AEC) | 159 |
| 5.6 |  NET GENERATION | 159 |
| 5.7 |  GROSS STATION HEAT RATE (GSHR) | 161 |
| 5.8 |  SPECIFIC FUEL OIL CONSUMPTION (SFOC) | 161 |
| 5.9 |  GROSS CALORIFIC VALUE (GCV) OF FUELS | 162 |
| 5.10 |  LANDED PRICE OF FUELS | 162 |
| 5.11 |  ENERGY CHARGES | 166 |
| 5.12 |  OTHER EXPENSES INCURRED DUE TO POWER PURCHASE | 167 |
| 5.13 |  ADDITIONAL CAPITALISATION | 171 |
| 5.14 |  MEANS OF FINANCE OF ADDITIONAL CAPITALISATION | 171 |
| 5.15 |  AFC | 171 |
| 5.16 |  O&M EXPENSES | 174 |
| 5.17 |  DEPRECIATION | 179 |
| 5.18 |  INTEREST ON LONG-TERM LOANS AND OTHER FINANCE CHARGES | 181 |
| 5.19 |  INTEREST ON WORKING CAPITAL (IOWC) | 183 |
| 5.20 |  ROE | 186 |
| 5.21 |  NON-TARIFF INCOME (NTI) | 186 |
| 5.22 |  AFC | 188 |
| 5.23 |  HYDRO LEASE RENTAL | 188 |
| 5.24 |  REDUCTION IN AFC DUE TO SHORTFALL AGAINST TARGET AVAILABILITY | 189 |
| 5.25 |  REVENUE FROM SALE OF POWER | 189 |
| 5.26 |  SUMMARY OF TRUE UP OF FY 2024-25 | 190 |
| 6 | CUMULATIVE REVENUE GAP/(SURPLUS) | 190 |
| 6.1 |  CUMULATIVE REVENUE GAP/(SURPLUS) UP TO FY 2024-25 | 192 |
| 7 | FUEL UTILISATION PLAN FOR FY 2025-26 TO FY 2029-30 | 192 |
| 7.1 |  BACKGROUND | 194 |
| 7.2 |  ACTUAL COAL UTILISATION DURING FY 2022-23 AND FY 2023-24 | 195 |
| 7.3 |  PROPOSED COAL UTILISATION FOR H2 OF FY 2024-25 TO FY 2029-30 | 202 |
| 7.4 |  COAL ALLOCATION | 211 |
| 7.5 |  STRATEGY TO MEET SHORTFALL OF COAL IN REAL TIME | 211 |
| 7.6 |  PRICES AND GCV OF FUELS AND ESCALATION FACTOR FOR FUEL COST | 214 |
| 7.7 |  RELAXATION IN GCV VARIATIONS BETWEEN GCV AS BILLED (LOADING) VIS-À-VIS GCV ARB UNLOADING | 215 |
| 7.8 |  GAS SUPPLY FOR URAN | 215 |
| 7.9 |  USE OF BIOMASS PELLETS | 216 |
| 7.10 |  COMMISSION'S ANALYSIS ON FUEL UTILISATION PLAN FOR FY 2025-26 TO FY 2029-30 | 218 |
| 8 | MULTI YEAR TARIFF FOR THE CONTROL PERIOD FY 2025-26 TO FY 2029-30 | 218 |
| 8.1 |  BACKGROUND | 218 |
| 8.2 |  OPERATING CAPACITY DURING THE CONTROL PERIOD | 218 |
| 8.3 |  NORMS OF OPERATION | 227 |
| 8.4 |  AVAILABILITY AND PLF | 232 |
| 8.5 |  AUXILIARY ENERGY CONSUMPTION (AEC) | 232 |
| 8.6 |  NET GENERATION | 235 |
| 8.7 |  GROSS STATION HEAT RATE GSHR | 238 |
| 8.8 |  SECONDARY FUEL OIL CONSUMPTION (SFOC) | 239 |
| 8.9 |  TRANSIT LOSS | 239 |
| 8.10 |  CONSIDERATION OF MOISTURE LOSS FOR GCV | 241 |
| 8.11 |  GCV AND LANDED PRICE OF FUELS | 243 |
| 8.12 |  ENERGY CHARGE RATE | 250 |
| 8.13 |  CAPITALISATION PLAN | 254 |
| 8.14 |  MEANS OF FINANCE OF ADDITIONAL CAPITALISATION | 254 |
| 8.15 |  ANNUAL FIXED CHARGES (AFC) | 254 |
| 8.16 |  O&M EXPENSES | 265 |
| 8.17 |  SPECIAL ALLOWANCE | 275 |
| 8.18 |  DEPRECIATION | 280 |
| 8.19 |  INTEREST ON LONG TERM LOANS AND OTHER FINANCE CHARGES | 281 |
| 8.20 |  IOWC | 282 |
| 8.21 |  RETURN ON EQUITY (ROE) & INCOME TAX | 284 |
| 8.22 |  NON TARIFF INCOME (NTI) | 284 |
| 8.23 |  ANNUAL FIXED CHARGES (AFC) | 285 |
| 8.24 |  AFC REDUCTION | 286 |
| 8.25 |  MYT FOR THERMAL GENERATING STATIONS | 286 |
| 8.26 |  HYDRO LEASE RENTAL | 289 |
| 8.27 |  TARIFF FOR HYDRO STATIONS | 290 |
| 9 | PROVISIONAL TARIFF OF BHUSAWAL UNIT 6 | 290 |
| 9.1 |  BACKGROUND | 290 |
| 9.2 |  PROVISIONAL TARIFF OF BHUSAWAL UNIT 6 FOR 5TH CONTROL PERIOD | 292 |
| 9.3 |  O&M EXPENSES | 292 |
| 9.4 |  DEPRECIATION | 292 |
| 9.5 |  INTEREST ON LOAN | 292 |
| 9.6 |  RETURN ON EQUITY | 293 |
| 9.7 |  INTEREST ON WORKING CAPITAL | 295 |
| 10 | SUMMARY OF APPROVED TARIFF | 295 |
| 10.1 |  TARIFF FOR THERMAL GENERATING STATIONS | 296 |
| 10.2 |  TARIFF FOR HYDRO STATIONS | 296 |
| 11 | COMMISSION'S DIRECTIVES | 296 |
| 11.1 |  DIRECTIVES IN ORDER DATED 30 MARCH, 2020 IN CASE NO. 296 OF 2019 | 298 |
| 11.2 |  DIRECTIVES IN ORDER DATED 31 MARCH, 2023 IN CASE NO. 227 OF 2022 | 299 |
| 11.3 |  DIRECTIVES ISSUED IN THIS ORDER | 302 |
| 12 | APPLICABILITY OF THE ORDER | 307 |

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