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