This section lists down various submissions made by PEG to Maharashtra Electricity Regulatory Commission (MERC, the Commission) during medium term power procurement process of state distribution licensee MSEDCL. 

MSEDCL filed a petition for approval of 1000 MW medium term power procurement for period of January 1, 2011 to December 31, 2012 based on its demand-supply forecast and on consideration that Uran Gas project may get delayed. PEG through its letter dated 4th March 2010 submitted that as per MSEDCL’s own projections, even if all the potential capacity becomes available as per the expected schedule, there would be still peak shortfall of around 2466 MW and hence it is not clear on what basis MSEDCL is proposing procurement of only 1000 MW for 2 years. The commission noted Prayas's submission but approved the quantum as well as the deviations sought by MSEDCL through its order dated 13th April 2010. However immediately in the following month May 2010, MSEDCL submitted a fresh petition (case no 14 of 2010) requesting the quantum of procurement to be increased from 1000 MW to 2000 MW for two years. Again through its letter dated 29th June Prayas re-iterated its concerns regarding ad-hoc planning process and requested the commission to ensure that power purchase is planned in a rational manner. The commission through its order dated 8th September 2010 approved the increased quantum.

Later on in February 2011, based on bidding pursuant to commission’s above mentioned order, MSEDCL filed a petition (case no 23 of 2011) seeking adoption of Tariff and approval of reduction in requisitioned capacity to 1000 MW for Medium Term Power Procurement under Case 1 Bidding. As per the bidding process M/s Adani Power Pvt Ltd (APL) emerged as L1 and M/s JSW Energy Ltd as L2. Post negotiations it was agreed that M/s.Adani Power Ltd. will supply 800 MW from Tiroda Plant ( In case of shortage power from Mundra project or any other source as per PPA) and M/s. JSW Energy will supply 200 MW from Unit 2 of JSW, Ratnagiri Power Plant, respectively at Rs. 4.10/kWh. Prayas through its submission dated 18th March 2011 highlighted several important facts which the commission should consider, along with the important issue of allocation of power from unit 2 & 3 of Tiroda plant. It was pointed out that as per PPA with APL dated October 2008 (which was signed pursuant to case-1 stage-1 long term competitive bidding conducted by MSEDCL in 2007-08), it is mandatory on part of APL to supply all power from Units 2 and 3 to MSEDCL as per the long term PPA terms and tariff of Rs. 2.553/kWh (which is the first year tariff as per PPA and is less than currently proposed tariff by over Rs.1/ unit). MSEDCL contended that Cabinet sub-committee on energy has approved sale of power from Tiroda unit 2 and unit 3 of Adani power prior to August 2012 (scheduled delivery date) and at tariff discovered through medium term bidding process (Rs. 4.10/kWh). 

PEG contended that such change amounts change in long term PPA and buying already contracted power at much higher rate. The commission after taking into consideration the Prayas submission and the material placed on record before it ruled that any generation of power from Unit 2 and Unit 3 of Tiroda Thermal Plant should be supplied to MSEDCL at the rate as per long term PPA dt. October 2008 and generation from these unit 2 and 3 would not qualify for supply under this medium term power purchase. Subject to this important condition the commission approved the tariff discovered for medium term power procurement of 1000 MW through its order dated 19th May 2011. Thus, in this case, both, MSEDCL and Adani power were mandated to adhere to contractual terms and efforts to dilute long term PPA were prevented.