NPC-SPUG filed its Fifth (5th) Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Mechanism (ICERA) applications with the Energy Regulatory Commission (ERC) on 18 August 2009. The applications, under ERC Case No. 2009-058RC and ERC Case No. 2009-059RC for the GRAM and ICERA, respectively, cover the test period 26 December 2007 to 25 December 2008. The GRAM petition represents the deferred accounting adjustment (DAA) for deferred fuel costs in the amount of PhP 3.579 Billion. This includes PhP 3.427 Billion in fuel costs and PhP 0.152 Billion in carrying charges. The ICERA application, on the other hand, amounts to PhP 0.583 Billion, broken down into PhP 0.555 Billion in deferred costs due to foreign exchange rate fluctuations and PhP 0.028 Billion in carrying charges.

       The applications are in accordance with ERC Case No. 2003-44 - "In the Matter of the Adoption of the Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Adjustment (ICERA)", dated 24 February 2003, which sets the guidelines for the recovery of deferred fuel and foreign exchange costs brought about by fuel price and exchange rate fluctuations, respectively.