Broad Range of Services Included
LAS VEGAS, NEVADA (December 10, 2003) --- American Electric Power (AEP), the largest electricity generator in the United States, has awarded a $165 million, six-year service agreement to GE Power Systems covering gas and steam turbines throughout AEP's 11-state territory.
Under the service agreement, GE will supply parts, services and repairs for the turbines, generators and auxiliary equipment, along with GE Betz water treatment chemicals and services. The gas turbines are GE Frame 7FA machines operating in both combined-cycle and simple-cycle applications at three AEP plants, while the steam turbines are installed across the AEP network.
"The scope of equipment and services included in this agreement is unprecedented," said Michael Kalmes, general manager of contractual services for GE Power Systems. "It combines a wide variety of service offerings from several GE business units into a comprehensive, flexible package, providing AEP with a single, reliable source for all of their power plant service requirements."
William Sigmon, Senior Vice President Fossil & Hydro Generation for AEP noted, "Our strategy is to seek the highest fleet reliability possible, with reduced costs for maintenance over an extended period of time. The agreement with GE is designed to meet those objectives while offering the flexibility required to operate in today's competitive utility environment."
In the wake of its successful gas turbine service agreement initiatives, GE recently added steam turbine service agreements to its range of offerings, and the AEP agreement is the first large-scale application of this program. Worldwide, GE has service agreements in place at 626 sites.
GE's service agreements are structured to deliver operational solutions to meet customers' energy needs and mitigate the associated risks. The agreements offer price predictability, operational flexibility and superior turbine reliability and performance over the life of the agreement.
AEP owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets. Based in Columbus, Ohio, the company has nearly five million customers linked to its 11-state electricity transmission and distribution grid.
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