As per case facts, the transmission utility sought additional capitalization and tariff revision for the cost incurred in replacing three Inter-connecting Transformers (ICTs) that were burnt and damaged by internal ... faults. The utility had temporarily diverted ICTs from other projects and later restored them with new/repaired units. The CERC and the Appellate Tribunal rejected the claim for capitalization and revision, holding that replacement was part of routine operation and maintenance (O&M), and the costs should be met from the utility's self-insurance fund. The question arose whether the expense incurred by the utility for the emergency replacement of damaged ICTs due to internal faults could be considered 'additional capitalization' under the relevant Tariff Regulations for the purpose of tariff determination, and if the cost should be covered by the utility's self-insurance policy. Finally, the Court dismissed the appeal, confirming that the ICT replacement did not qualify as additional capitalization under the Tariff Regulations, as it was neither an "additional work/service" nor a replacement of "old assets" as contemplated, but rather a necessary function of O&M; furthermore, applying the principle of proximate cause, the loss was caused by fire resulting from the machinery breakdown and was thus covered by the utility's self-insurance policy, and the fund should bear the cost.