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PEZA vs. ECGC [DECISION]

PHILIPPINE ECONOMIC ZONE AUTHORITY, Petitioner, versus EDISON (BATAAN) COGENERATION CORPORATION, Respondent

G.R. No. 179537 | 2009-10-23

D E C I S I O N
 
CARPIO MORALES, J.:
 
Petitioner Philippine Economic Zone Authority (PEZA) and Edison (Bataan) Cogeneration Corporation (respondent) entered into a Power Supply and Purchase Agreement (PSPA or agreement) for a 10-year period effective October 25, 1997 whereby respondent undertook to construct, operate, and maintain a power plant which would sell, supply and deliver electricity to PEZA for resale to business locators in the Bataan Economic Processing Zone.

In the course of the discharge of its obligation, respondent requested from PEZA a tariff increase with a mechanism for adjustment of the cost of fuel and...