Trail of Power Mess Leads to Ramos

Name of Plant :	Navotas Gas Turbine Power Plant Unit 1-3 (A1)
Name of IPP :	Mirant Philippines, Inc.
Contract Type :	Build-Operate-Transfer/Energy Conversion Agreement/Solicited
Status of Plant :	Operating
Cooperation Period :	12 years (January 1991 - January 2003)

Nature of Issue	Issue	Recommendation
Cost Escalation	Interpretation of energy formula under clause 5.2 of eight schedule	NPC Management to recover overpayment due to erroneous interpretation and application of formula

	Fuel bonus "0 (Vg-Vt)" is limited to the dollar component consistent with sample computation, no peso component. The proponent, however, charged NPC also for the peso component.

	Effective Sept. 25 - Oct. 25, 2001 billing, no payment was made on fuel bonuses on the peso component.