Coal, Gas

Parts Pooling Will Save Money for Public Power Utilities

Issue 4 and Volume 107.

Colectric Partners Inc., an economies-of-scale organization for public power formed by Jacksonville (Florida) Electric Authority, MEAG Power, Nebraska Public Power District and Santee Cooper, has launched its Combustion Turbine Spare Parts Initiative (CT-SPIN). The 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 according to Alder. 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 as defined by the Internal Revenue Service Code.