[SOURCE: IPP REVIEW COMMITTEE REPORT]
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Name
of Plant :
100 MW Zamboanga Bunker
Coal-Fired DieseI Power Plant Project (A26)
Name of IPP :
Alsons Power Holdings Corporation & Tomen Corporation
Contract Type :
Build-Operate-Transfer/Energy Conversion Agreement/Solicited
Status of Plant :
Operating
Cooperation Period :
18 years (December 1997 - December 2015)
Nature of Issue
Issue
Recommendation
Fee Structure
With a low dispatch level, the power plant is not utilized to
its full potential and its "wear and tear" is considerably slower.
This means that the replacement cost of the plant parts embedded in the
tariff structure may have been lowered. The Fixed O & M portion of tariff
is pegged at the maximum capacity regardless of dispatch level. Therefore,
whether or not the power plant is operating to its full potential, the full
fixed O & M fees are paid by NPC.
NPC to negotiate restructure of O & M fees from fixed cost
to variable cost
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