Trail of Power Mess Leads to Ramos

Name of Plant :	700 MW Pagbilao Coal-Fired Thermal Power Plant (A3)
Name of IPP :	Mirant Pagbilao Corporation
Contract Type :	Build-Operate-Transfer/Energy Conversion Agreement/Solicited
Status of Plant :	Operational
Cooperation Period :	29 years (August 1996 - August 2025)

Nature of Issue	Issue	Recommendation
Nominated Capacity in excess of contracted capacity	NPC agreed with and paid for IPP's nominated equivalent to 105% (excess of 35,000 kw) of Contracted Capacity despite energy drawn fell below NCC.	NPC negotiate for recovery of nominated capacity payments made in excess of NCC
Fee Structure	The company's investment recovery period is much shorter than the cooperation period.	Revisit fee composition and explore restructuring to ease burden on NPC especially during low demand for energy.
Escalation	Adjustment factor yielding high increase over base rate (57% in 3rd year, 70% at 5th year).	Revisit escalation formula.
Output Measurement	Differing interpretation in measurement of actual monthly gross generation resulting in higher capacity fees.	�Instruct NPC to settle with Mirant determination of actual gross monthly generation.