5-8 AUGUST 2002
Trail of Power Mess Leads to Ramos

[SOURCE: IPP REVIEW COMMITTEE REPORT]

Name of Plant : 640 MW Leyte-Cebu (200 MW) & Leyte-Luzon (440 MW) Geothermal Power Plant (A19 & A21)  
Name of IPP : PNOC-Energy Development Corporation  
Contract Type : Build-Operate-Transfer/Power Purchase Agreement/Solicited  
Status of Plant : Operational  
Cooperation Period : 25 years - Leyte-Cebu (July 1996 - July 2021)                                                                                    Leyte-Luzon (August 01, 1997 - August 01, 2022)  
     
Nature of Issue Issue Recommendation
Fee Structure Components of the escalation factor may have contributed to higher IPP rates.                                                                                                                                                                                                                                                                                                                                                      Validate the components of the escalation adjustment for possible modification of inflation factor.                                                                                   
  Mismatch of PPA's 25 years cooperation period over ECA's 10 years cooperation period may have brought about higher IPP rates over NPC's production costs. Energy Regulatory Commission (ERC) to unbundle energy fees in order to determine possible price component modification.


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