GE Power Systems has not been able to keep its gas and steamturbines on the shelves, as Reliant Energy, Duke Energy NorthAmerica and NRG Energy all recently signed long-term multi-turbineagreements.

GE billed the Duke purchase, worth $4 billion in generationequipment and services, as one of the largest commitments of itstype in U.S. history.

The Duke agreements cover the purchase of 84 gas turbines, 17steam turbines and long-term service agreements for up to 23merchant power plants across the country. When completed, the powerplants will produce more than 13 GW of power for the wholesale U.S.market. The units ordered represent enough electricity to power upto six million homes.

GE gas and steam turbines, with their associated auxiliaryequipment, have been shipped to four Duke projects currently underconstruction. In addition, construction activities will begin onsix more projects during the first half of 2000 with subsequentturbine and auxiliary equipment shipments to support summer peakingrequirements in 2001 and 2002, respectively. The remainingequipment will be shipped from 2000 through 2002 with the intent ofsupporting the regional summer load growth in several U.S. markets.The service agreements will provide major maintenance and spareparts over a 12-year period from the date of installation on theDuke Energy North America projects.

But why sign such a large deal? “With the GE partnership we haveagain capitalized upon market timing. It is the same marketphilosophy that we bring to managing our generation portfolio,”said James M. Donnell, president and CEO of Duke Energy NorthAmerica.

In another deal, NRG Energy Inc., a wholly-owned subsidiary ofNorthern States Power Co. executed a memorandum of understandingwith GE Power Systems to purchase 11 gas turbine generators andfive steam turbine generators. The purchases will take place overthe next five years and are valued at $500 million with an optionto purchase additional units.

The 16 turbines have an equivalent generation output of 3,000MW, which represents enough electricity to supply approximately 1.5million homes.NRG Energy intends to install the turbines at itsexisting North American plant sites.

S&S Energy Products, a GE Power Systems business, wasawarded a $280 million contract from Reliant Energy of Houston toprovide 19 GE LM6000 gas turbine-generator sets, auxiliary andbalance-of-plant equipment.

“The acquisition of GE’s state-of-the-art aeroderivative gasturbines from S&S Energy Products provides us with uniquecapabilities to complete our power projects in the Midwest andoffer our customers an in-service date as early as the summer of2000,” said Carolyn Marsh, vice president, Reliant Energy PowerGeneration.

Reliant Energy will operate the gas turbines in simple- cyclemode for peaking power. Some units will begin service this summer,with the remaining slated for operation next summer. Reliant plansto use eight of the units at a site in Shelby County, IL.

S&S Energy Products will fabricate and assemble the LM6000gas turbine-generator packages in Houston. “To meet the tremendousincrease in power needs throughout the United States, S&SEnergy Products has experienced a significant rise in gas turbinedemand,” said Mark Axford, vice president of North American Salesfor S&S Energy Products. “This is evidenced by the sale of 88GE LM gas turbine- generator sets, including the 19 Reliant Energyunits, in 1999.” S&S Energy Products is headquartered inHouston.

GE is no stranger to mega-power generation suppliestransactions. Last year, the company inked Entergy into a $1.9billion, 24 turbine deal, and also forged an arrangement withDominion Resources for a 10 turbine deal. Yet this effort is muchlarger than either of those previous endeavors. The commitmentsfrom Duke include 36 7FA advanced technology gas turbine-generatorsand up to 48 7EA gas turbine-generators, plus 17 steam turbines.

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