Proposed regulatory changes and tepid growth in project commissioning rate are the key risks faced by state-owned power transmission company Power Grid Corp of India (PGCIL), analysts said. The Central Electricity Regulatory Commission (CERC) proposing to lower the regulated return on equity (RoE) below 14% from 15.5% can dent returns, Axis Capital said in a recent note. The regulator's new proposed tariff structure also suggests returns to be contingent on the amount of electricity flowing through transmission networks, as opposed to the existing system of asset availability. This, if implemented, could have an impact on PGCIL's earnings, analysts at Edelweiss noted. PGCIL's core RoE declined 170 basis points year-on-year to 11.2% in the quarter ended June 30. The entire Rs 1.1 lakh crore worth of total projects in PGCIL's hand will be capitalised in the next two to three years, IDFC Securities observed.