Unbundled Companies of MSEB, Maha Genco (MSEB Generation Company) and Maha Transco (MSEB Transmission Company) filed their Annual Revenue Requirement (ARR) and Tariff Revision applications for FY 2006-07 before MERC in February 2006. MERC held technical validation session for Genco on 7th April 2006 and for Transco on 26th April 2006 for identifying critical data gaps in the ARR applications. Prayas actively participated in both sessions and requested some additional data to facilitate further analysis of ARRs. As directed by MERC, most of the data asked by Prayas was made public. Public hearings on these ARRs took place on 13th June 2006 at Mumbai. Following are Prayas’s comments made during the ARR and Tariff Revision process for Maha Genco and Maha Transco for FY 2006-07. These comments mainly deal with the important techno-economic issues and some gaps and inconsistencies in the ARR application