In announcing a $4 billion deal with Duke Energy North Americato provide power generation supplies and related services, GE PowerSystems said it has entered into one of the largest commitments ofits type in U.S. history.

The agreements cover the purchase of 84 gas turbines, 17 steamturbines and long-term service agreements for up to 23 merchantpower plants across the country. When completed, the power plantswill 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 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.

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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