GE develops new service agreement program for steam turbine plants

ATLANTA, Ga., Aug. 7, 2003 — GE Power Systems is expanding its Contractual Service Agreement (CSA) program to include CSAs specifically designed for steam turbine facilities worldwide.

Designed to help lower the cost of operating a power plant, the new steam turbine CSAs are commercially available today.

GE’s existing CSA program addresses gas turbine and combined-cycle plants, with CSAs in place at more than 600 sites around the world. The newly developed CSAs will focus exclusively on steam turbines, including steam turbines in operation at nuclear facilities.

“We believe the detailed steam turbine CSA program, as structured, is the first of its kind in the steam turbine industry,” said Michael Kalmes, general manager of GE Power Systems’ Contractual Services business. “It has been developed in the wake of the favorable acceptance of our gas turbine CSAs, and in response to multiple requests from customers.”

The steam turbine CSAs will provide all planned maintenance over the life of the

agreement at a fixed price, will include risk sharing on parts lives and inspection interval variations, and will include the services of a contract performance manager. The agreements also may include performance guarantees on output, heat rate, availability and/or reliability

“A full CSA provides customers with many advantages such as risk mitigation, performance guarantees, more certain maintenance budgeting, GE collaboration to help drive lower maintenance costs and predictive maintenance, and a primary point of contact to coordinate with GE,” said Kalmes.

The development effort for the steam turbine CSAs has involved various business units throughout GE Power Systems. Using rigorous Six Sigma quality processes, the development team performed an extensive statistical analysis to create a modeling tool allowing for a set of detailed recommendations regarding time between outages, scope of work required at each outage and parts replacement intervals. “The result is an easy-to-use steam turbine CSA model,” said Kalmes.

About GE Power Systems

GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems, with 2002 revenues of nearly $23 billion. GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

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