"I want to make clear that I have't seen the contract. My comments are based solely on my reading of the Applicant's petition contained in the link above. Further to the 100% Capacity Factor issue: LEYECO III must nominate 2.5 MW each and every hour of the year, but GCGI gets to designate up to 1,440 hour per year as "maintenance allowance." So only energy associated with an annual capacity factor as low 83.6% might be available at the Contract price. Language in petition isn't totally definitive on this point, but my reading is that "replacement energy" (for the maintenance allowance) must be procured from and supplied by GCGI (to the extent available to CGCI) at a prices equivalent to the replacement energy cost, but no lower than the Contract price. So if GCGI replaces energy at P3/kWh, they still bill at Contract price of P5.1/kWh escalated. I could be wrong about that. My observation is that that is not an uncommon provision in Philippine bilaterals and is neither good nor bad -..." - Nick in Manila