Siemens

Lakeland, FL: (Apr-11-07) Lakeland Electric filed a defective product suit against Siemens after two extended failures of its natural gas turbine generator, Unit 5. A broken bolt on the 356-megawatt, gas-fired Unit 5 generator put it out of commission in June and July of 2005 followed by Unit 5 being down for a month in May 2006 because a motor blade went awry, damaging hundreds of other blades. A settlement reached between the two involved a $10.1 million payout, though most of it won't come to Lakeland Electric for five years, when a long-term maintenance agreement between Siemens and Lakeland Electric expires. The utility has received a $1.7 million credit toward a payment to Siemens. It will receive the other $8.4 million credit at the end of the contract. [THE LEDGER: GAS TURBINE]

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Published on Apr-18-07