Enron Mail

From:kevin.presto@enron.com
To:john.lavorato@enron.com
Subject:Peaker Failures
Cc:
Bcc:
Date:Mon, 17 Jul 2000 02:43:00 -0700 (PDT)

---------------------- 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