Trail of Power Mess Leads to Ramos

Name of Plant :	Sual 1,000 MW Coal-Fired Thermal Plant (A22)
Name of IPP :	Mirant Sual Corporation
Contract Type :	Build-Operate-Transfer/Energy Conversion Agreement/Solicited
Status of Plant :	Operating
Cooperation Period :	25 years (October 5, 1999 - October 23, 2024)

Nature of Issue	Issue	Recommendation
High nominated capacity	NPC accepted IPP's nominated capacity above contracted capacity although not mandated by ECA	NPC. should reject capacity nomination beyond contracted capacity.
High level of Minimum Energy Off Take (MEOT)	NPC is able to dispatch barely 60% of purchased energy	Renegotiate for lower MEOT with escalation to match expected power growth
Reasonableness of fees	The reasonableness of cost structure given: 1) high rate of return to IPP; 2) high escalation cost	Review bases for fees given huge devaluation in 1997 and strong public clamor for reduction in IPP-related power costs
Sale of Excess Capacity by IPP	Because the plants constructed were of higher capacity than originally designed, IPP is selling the extra 200 MW thru sale sharing scheme with NPC	Review the agreements and cost structure for possible subsidy from NPC clients to Mirant Mobile clients.