Allocation of costs of production at generating stations

THE NINTH SCHEDULE ALLOCATION OF COSTS OF PRODUCTION AT GENERATING STATIONS I. For the purposes of this Schedule- (a) the average load factor of a station shall be expressed as a percentage and shall be ascertained by multiplying the number of kilowatt-hours supplied from the station during the year of account by 100, and dividing the product so obtained by the product of the average monthly maximum demand multiplied by the number of hours during which the station was in commission in the year of account ; (b) the average monthly maximum demand shall be the arithmetical average of the monthly maximum demands on the station in those calendar months during which the station was in commission in the year of account ; (c) a station shall be deemed to be in commission when the whole or any portion of the plant in the station is generating electricity or is in readiness to generate electricity upon demand ; (d) "cost of fuel" means the sums expended for fuel consumed plus the cost of any transport handling, preparation or treatment incurred in connection with the delivery of fuel to the boiler hoppers, furnaces or engines and in connection with the disposal of the products or residues of combustion, plus the proportion of salaries and wages and any contributions made by the owner of the station for pensions, provident fund properly attributable to such delivery or disposal, less any sums received from the sale of any products or residues of combustion ; (e) "cost of oil, water and stores" means the sums expended for oil, water and stores consumed ; (f) "cost of repairs, maintenance and renewals" means the sums expended for repairs and maintenance and for renewals not chargeable to capital account, together with the proportion of salaries and wages and any contributions made by the owner of the station for pensions, provident fund, superannuation and insurance of officers and servants properly attributable to repairs, maintenance and renewals ; (g) "salaries and wages" means the sums expended for salaries and wages and any contributions made by the owner of the station for pensions, provident fund, superannuation and insurance of officers and servants, less the proportion of such sums properly attributable to the cost of fuel under clause (d) and the cost of repairs, maintenance and renewals under clause (f). II. Of the costs of production of electricity at a generating station ascertained in accordance with the Eighth Schedule, the following costs, charges and allowances in respect of the year of account shall be allocated as "fixed costs", namely :- (a) of the costs, charges and allowances set out in clause (a) of paragraph I of the said Schedule, portions calculated from the appropriate formulae set out in paragraph III ; (b) the whole of the costs, charges and allowances set out in the remaining clauses of paragraph I of the said Schedule. III. The portion of the following costs, charges and allowances to be allocated as fixed costs shall be ascertained from the formulae hereinafter set out against each, namely :- (a) cost of fuel - 100 / 100+9.66 L (b) cost of oil, water and stores 1 / 100 / 100-l-9.66 L (c) salaries and wages 1 / 100 / 100-l-0.38 L (d) cost of repairs, maintenance and renewals 100 / 100+0.0001 NI where- L=the percentage average load factor of the station ; N=the numbers of hours during which the station was in commission in the year of account. IV. The amount of the different between the costs of production at a generating station ascertained in accordance with the Eighth Schedule and the fixed costs in respect of the year of account determined in accordance with this Schedule shall be allocated as "running costs", V. The foregoing provisions of this Schedule shall not apply in any case where it is agreed between the Board and the owner of the station that the circumstances or conditions of operation in the station, whether temporary or continuing, are such that the said provision sought not reasonably be applied ; and in such case the allocation between fixed costs and running costs shall be made in such manner as the Board and the said owner may agree.