RE: Market Info.

thanks Gregg, great info

fletch

-----Original Message-----
From: =09Penman, Gregg =20
Sent:=09Monday, July 02, 2001 2:36 PM
To:=09Presto, Kevin M.; Sturm, Fletcher J.; Shively, Hunter S.
Cc:=09Luce, Laura; Tomaski, Richard
Subject:=09Market Info.

Just passing along some information from the Chicago office. You may alrea=
dy know this, but here is what I have heard.

Peoples Energy/Dominion's Elwood plant is currently being inspected and rep=
aired for cracks in the turbine blades. The problem was explained to me as=
a result of a new blade grinding process being performed by a third party =
which has affected a large batch (potentially 153 units) of GE FA's (150MW'=
s). The Elwood plant is one of the first units to be inspected and repaire=
d (Dominion had 2 units done prior to Elwood). The inspection can be done =
on-site but involves removal and non-destructive testing of each blade (the=
re are 92 blades in this section of the FA) and is subject to availability =
of replacement blades and trained personnel. The Elwood plant has taken ap=
proximately one week working two twelve hour shifts. One turbine required =
replacement of all blades. GE is currently telling FA customers that they =
should conduct inspections at the customer's earliest convenience due to pr=
oblems experienced in testing and through field verifications (Elwood). Th=
ey have not suggested any failure rates as a result of this problem. I am =
assuming that most customers will choose to postpone inspections depending =
on the particular offtake structure. =20

I will pass along any additional information I hear regarding this situatio=
n. Let me know if you have any questions.

Gregg