I do not see a recent update to this so I am sharing my experience:
U.S. Passport expires in July this year and have travel plans so need new passport to comply with the 6 months remaining requirement the Philippines and other countries have.
I filled out the application using the wizard on the embassy website and printed it out. On the application you can request the larger passport which has twice the pages as 'normal'. The cost of the regular and extra page passport is the same, the State Department no longer issues extra pages to add to your passport so if you think you will need them get them on renewal.
Per the instructions on the website, I went to BPI and got a bank draft for $110, had to put my wife's name and account number on the BPI request but they put my name on the draft. Not sure, but sounded like you need an account to get the draft. The exchange rate they used was better than xe.com (over p50.00 to $1 on a P49.xx to $1 day) and charged p250 (best I can remember) service fee.
Since the Air21 phone number at the Embassy does not work (per the instruction sheet, I believe it is finally working now) I just went to Air21 in Duma. Instead of p240 round trip door-to-door, it was p300 to send from their office and I will have to pay the Air21 return fee COD to the driver.
2 weeks since I was at Air21 I checked the Embassy Passport Status website, it said my new passport has been printed in the US and sent to the Manila Embassy.
Final result, I recieved my old and new Passport (with extra pages) via Air21 COD to my door today. COD fee was p120. That makes it mailed to Embassy via Air21 in Dumaguete on Friday 27 January and received via Air21 in Valencia on Wednesday 1 March, 2 days short of 5 weeks.