A technique of the heat rate allocation was devised to monitor the performance of Combined Cycle Power Plant. This calculates the expected heat rate of current conditions and compares it with actual values. Loss allocation in heat rate is reconciled by calculating the magnitude of the deficiency contributed by major components, such as the gas turbine, heat recovery steam generator (HRSG), steam turbine and condenser. Expected power output is determined by a detailed model and correction curves of the plant.