JACKSONVILLE, Fla., March 7, 2003 — A new large frame industrial combustion turbine spare parts pooling program is designed to save millions for public power utilities.
Colectric Partners Inc.-an economies of scale organization for public power formed by JEA, MEAG Power, Nebraska Public Power District and Santee Cooper-announced the launch of its Combustion Turbine Spare Parts Initiative, CT-SPINSM.
This fleet management program for large frame industrial gas turbines allows participating members to pool their critical spare parts, thereby optimizing inventory costs while assuring parts availability during planned outages and emergencies.
Bob Alder, Colectric’s President and CEO, said that CT-SPIN represents a strategic opportunity for public power utilities that can’t achieve economies of scale through mergers and acquisitions, to recognize significant cost savings through collaboration. A recently completed scoping study for the members’ current fleet of eleven GE 7FAs and five GE 7EAs showed an “outstanding ROI, with a benefit-to-cost ratio of greater than 10,” Alder said. CT-SPIN is the keystone program for Colectric that establishes the pattern for future program expansions and further cost savings.
“The CT-SPIN program will start with pooling the critical Hot Gas Path (HGP) and Combustion Inspection (CI) parts kits,” said Curt Staley, Vice President and Director of Operations. After the HGP/CI program is in place, the program will be expanded to include other critical parts and equipment, such as steam turbines and balance of plant components. “We will also look into expanding the program to other combustion turbines, including aeroderivitives if there is sufficient interest and opportunities for savings,” Staley said.
Membership in Colectric Partners Inc. and participation in its strategic cost-saving initiatives is limited to not-for-profit state and municipal utilities per the Internal Revenue Code. Further information about Colectric and the different levels of membership can be found on Colectric’s web site at: www.colectric.com.