Message-ID: <6793660.1075845550135.JavaMail.evans@thyme> Date: Mon, 17 Jul 2000 02:43:00 -0700 (PDT) From: kevin.presto@enron.com To: john.lavorato@enron.com Subject: Peaker Failures Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Kevin M Presto X-To: John J Lavorato X-cc: X-bcc: X-Folder: \John_Lavorato_Oct2001\Notes Folders\Powereast X-Origin: LAVORATO-J X-FileName: jlavora.nsf ---------------------- Forwarded by Kevin M Presto/HOU/ECT on 07/17/2000 09:35 AM --------------------------- From: Mitch Robinson @ ENRON 07/17/2000 09:40 AM To: Kevin M Presto/HOU/ECT@ECT cc: Subject: Peaker Failures Linoln Energy Center - On 7/5/00, a 75 Mw turbine (GE 7EA GT) incurred a major generator fault while operating at power, resulting in copper bus melting - Probable cause is a manufacturing defect by supplier (GE/Brush) - No indication of operator or Enron error - Expected return to service is 8/1/00 (generator must be replaced) - Estimated financial impact on Enron without insurance claim is $1.5 MM ($0.2MM lost capacity payment, $1.3MM energy sales lost opportunity) - Financial impact on Enron with successful insurance claim is $0.5MM (insurance deductible) - Financial impact mitigation steps - Generator is being replaced by GE with a unit from the UK (warranty item - - no cost to Enron) - Russian Antonov has been leased to expedite TransAtlantic transfer - Enron has contracted with a generation specialist to ensure proper action by GE - Business Interruption insurers were brought in early to increase probability of a successful claim - GE is conducting a Root Cause Analysis Gleason Power - On 7/12/00, compressor blade fragments were found in the turbine exhaust of a 180 Mw gas turbine (Westinghouse 501FD GT) - Subsequent compressor inspection revealed significant damage to blades and diaphragms - Probable cause is a manufacturing defect in one compressor blade - No indication of operator or Enron error - Expected return to service is 7/24/00 - Estimated financial impact on Enron without insurance claim is $2.5 MM due to lost energy sales opportunity - Financial impact on Enron with successful insurance claim is $0.5MM (insurance deductible) - Financial impact mitigation steps - Complete compressor inspection is being conducted by Siemens Westinghouse - Damaged blades and diaphragms are being replaced by Siemens Westinghouse (warranty item - no cost to Enron) - Enron has contracted with a compressor specialist to ensure proper action by Siemens Westinghouse - Business Interruption insurers have been informed to increase probability of a successful claim - Siemens Westinghouse will conduct a Root Cause Analysis