Page 1 May, 2009 © Siemens SSK. 2009. All rights reserved. Energy Service Fossil Product Portfolio...

May, 2009 © Siemens SSK. 2009. All rights reserved.

Energy Service Fossil Product Portfolio

• Spare Parts• Outages• Repairs

• Service Agreements• Mod’s & Up’s• Life Time Assessment

Standard Service Packages:

Customized Service Solutions:

Executive SummeryEnergy Service - Service Fossil

For internal use only / © Siemens AG 2008. All rights reserved.

SIEMENS SSK

Service Concepts

SIEMENS SSK

Service Concepts


Standard Service Packages – Spare Parts

Siemens Spare Parts Concepts:

Single order spare parts

Event related spare parts offering

Spare parts stocking philosophies:

• Container Concept

• Consignment Concept

• Reservation Fee Concept


Standard Service Packages- Outages

Scope of Work

Disassembling

Fact Finding

Reassembly

Commissioning

Work according Check-List

Material Tests (NDT)

Scope Benefits

Turnkey Outage

Services

Whole outage done by

Siemens (turning gear on to

turning gear off)

Shorter Outage Duration

Performance Guarantees

Liability for delay

Outage Supervisory

Package

Siemens: Engineering & Project Management

NDT- Experts

Special Tools

Consumables

Supervisory & key staff

Customer: Local Personnel

Customer Special Tools

Standard Tools

Site Infrastructure

Local Subcontractors

Local Workshops


Standard Service Packages- Outages

TMS (Total Maintenance Service)

Availability

Efficiency

Reliability

Power

Outputon Time Delivery

high Quality

reasonable Prices

Provide

Right Products

in Right

Quantities

at Right Time


Standard Service Packages- Repairs

Various Factory Repairs

Blades & Vanes Refurbishment

Coating/Material Development

On-Site Repair Services


Customized Service Solutions – Service Agreements M

utu

al B

enef

it

Commitment

Program Business-

Service Agreements

Change Mode

Long Term Program

Operating Plant Service Agreement Project Managed

Maintenance Contract

Technical Field Assistant

Total Maintenance Services

PerformanceDriven

ExpandedScope/Risk

Transactional

Operations & Maintenance


Customized Service Solutions Operating Plant Service Agreement (OPSA)

OPSAs are exclusive, price-list based long-term contracts. Out of the OPSA’s scope Customer will buy under separate Purchase Contracts parts, repairs and service as per its requirements. In return for its associated exclusivity obligations, Customers will receive discounts.

Price List

Price Escalation

Scope DefinitionsDiscounts

Terms & Conditions

Customer

1 PRICES AND PAYMENT TERMS

1.1 Price

In consideration of the New Program Parts and Shop Repairs provided by Siemens as part of its obligations specified in Exhibit A, Customer shall pay Siemens the Escalated Net Prices. The Discounts are based on Customer’s estimate based on the exclusivity regulations set forth in Clause 3.1.1 (a) and (b) and their exceptions as set forth in this Contract that Customer will purchase New Program Parts and Shop Repairs under this Contract and in accordance with Clause 3.1.1 at a total List Price value exceeding 54,900,000 € (hereinafter Estimated Total Aggregate Value of Purchases). If, for any reason, the realized Total Aggregate Value of Purchases, will not meet the Estimated Total Aggregate Value of Purchases at the end or expiry of the Term, Customer shall at its option either:

(a) extend the Term of the Contract by written notice up to a maximum of five (5) years; or (b) refund Discounts provided by Siemens as per Exhibit E, Clause 2.0, Discount Refund

Schedule.

If, after extension of the Term pursuant to (a) above, Customer still has not met the Estimated Total Aggregate Value of Purchases, Customer shall refund Discounts provided by Siemens as per Exhibit E, Clause 2.0, Discount Refund Schedule.

1.2 Prices in case of earlier Deliveries

If Siemens under a Purchase Contract upon Customer’s request effects Delivery of the New Program Parts / Shop Repairs prior to expiry of the applicable Lead Time specified in Exhibit B, then Siemens shall be entitled to an Early Delivery Fee for such earlier Delivery in addition to the Net Price as specified below:

1) Delivery of New Program Parts:

(a) within thirty (30) days of Siemens’ receipt of the Purchase Order, 30% of the Escalated Net Price for such New Program Part;

(b) after thirty (30) days but within fifty (50) days of Siemens’ receipt of the Purchase Order, 20% of the Escalated Net Price for such New Program Part, or

(c) after f ifty (50) days of Siemens’ receipt of Customer’s Purchase Order up to the Lead Time applicable to the Delivery of such New Program Parts, 10% of the Escalated Net Price for such New Program Part.

2) Delivery of Refurbishments:

(a) within sixty (60) days of Siemens’ receipt of the Purchase Order, 30% of the Escalated Net Price for such Refurbishment;

(b) within sixty one (61) to ninety (90) days after Siemens’ receipt of the Purchase Order, 20% of the Escalated Net Price for such Refurbishment;

(d) within ninety one (91) days up to Lead Time applicable to the Shop Repair after Siemens’ receipt of the Purchase Order, 10% of the Escalated Net Price for such Refurbishment.

For the avoidance of doubt, replacement Program Parts supplied by Siemens as part of the Shop Repair are New Program Parts and the Early Delivery Fee shall be calculated accordingly.

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Operating Plant Service Agreement The re pro duc tion, tra nsmission or use of t his do cument or its co nte nts is not p ermitte d with out exp ress writt en a uth orit y. Off end er s will be liable for d ama ge s. All rig hts, includ ing righ ts cr eat ed b y pa ten t gran t or re gistr ation o f a utility mod el or de sign , ar e r eser ved .

Customer

ADDENDUM 1

SHOP REPAIR DESCRIPTION

SHOP REPAIR OF GAS TURBINE BLADES AND VANES

1. General

During the Term, Siemens shall perform the Shop Repair of Gas Turbine blades and vanes in the quantities as specified in Addendum 2, Forecast Schedule, as amended from time to t ime pursuant to Clause 3.3.

2. Scope

The following services shall be provided by Siemens for the Shop Repair of Gas Turbine blades and vanes:

(a) transportation of blades/vanes to Siemens’ Shop Repair facility in accordance with Clause 7.5 of the Contract;

(b) initial inspection and fact-finding;

(c) stripping (removal of coating / deeper lying inclusions by SICLEAN) and cleaning;

(d) dye penetrant testing;

(e) eddy-current testing of rotor blade roots and rotor blade trailing edges;

(f) blend by grinding repairs and welding / braze repairs, as far as necessary in accordance with Siemens’ specification;

(g) rotor blade tip welding, if separately ordered in the Purchase Order;

(h) re-coating as specified in Clause 2; Shop repair pricing of Exhibit B;

(i) heat treatment;

(j) smoothing of VPS coated surface;

(k) shoot peening of rotor blades roots;

(l) replacement of Tle 1 and Tle 2 vane metal sheet inserts, which are not in accordance to Siemens’ specifications, by new metal sheet inserts;

(m) reassembly of vanes;

(n) quality check including flow measurements of vanes and provision of blade distribution diagram, if applicable;

(o) replacement of non-refurbishable blades or vanes by new blades and vanes, which for the avoidance of doubts are New Program Parts;

(p) transportation of blades and vanes from Shop Repair facility to Customer in accordance with Clause 7.5 of the Contract;

Doc1.doc

Operating Plant Service Agreement Th e re pr od uc tion , t ra nsmiss ion o r u se of th is d oc umen t o r its con te nts is n ot pe rmitte d with ou t e xp re ss w ritt en a uth or ity. Of fen d er s will be liab le fo r da ma ge s. All r igh ts, inclu di ng rig ht s cr ea te d b y p a ten t g ra nt or r eg istr at ion

of a u tility mod el or de sig n, ar e re serve d.

Easy and comfortable access to Siemens services and parts

EXHIBIT D

ESCALATION FORMULA

1.0 GENER AL

Invo icing and payment of price adjustments shall be made on the basis of the first non-p reliminary publication of the applicable index. Should any of the indices above be d iscontinued, or should the basis of an index be modif ied, the Parties shall mutually agree o n an appropriate correction factor or substitute index.

ESCALATION FORM ULA FOR DELIVER IESA AND SERVICES

P1 = P0 * (0,60 * L1 /L 0 + 0,40 * M1/M0)

Where

P1 = the Escalated Net Price in EUR ,

P0 = the Net Price in EUR,

M 0 = the Verbrennungsmotoren und Turbinen Index from the Chamber of Commerce, Nuremberg, Germany (published by the Statistisches Bundesamt, W iesbaden, Fachserie 17 Reihe 2) as valid on the Effective Date.

M 1 = the index as defined for M 0, applicable at the time of invoice.

L0 = the index as defined for the wages for skilled workers of the mechanical / electrical industry for the wages area of Berlin, G ermany (confirmed by Industrie und Handelskammer, Nuremberg) as valid on the Effective Date.

L1 = the index as defined for L0, applicable at the time of invoice.

EXHIBIT C

DISCOUNT

1. DISCOUNT SCHEDULE

In accordance with Clause 4.1, Contract Price, a Discount of _______% for GT New Program Parts; _______% for GT Shop Repairs _______% for GT Scheduled Outage Services _______% for Seller’s tools according to design group 010 & 014XX of the List Price(s) in Exhibit B shall be applicable to any invoice related to this Contract, which Buyer will receive during the Term.

2. DISCOUNT REFUND SCHEDULE

In accordance with Clause 4.1, Contract Price, or Clause 12.4, Seller’s termination for Buyer’s default and Seller's and Buyer's Rights, Duties and Obligations upon Seller's Termination, or Clause 12.5, Termination for Buyer's Convenience, the following schedule shall apply for refund of Discounts: Discount Refund Stage

Total aggregate value of purchases under this Contract by Buyer, calculated at List

Prices

Aggregate Discounts to be returned to Seller

1 i > ________ € and i < = _________ € 30%

2 i > ________ € and i < = _________ € 50%

3 i > ________ € and i < = _________ € 70%

4 i > 0,00 € and i < = _________€ 90%

EXHIBIT B

PRICING FOR NEW PROGRAM PARTS, SHOP REPAIR AND SCHEDULED OUTAGE SERVICES

1.0 NEW PROGRAM PARTS PRICING

1.1 Price List for new Gas Turbine blades and vanes

Price list 2705429

Turbine Blade / Vane

Installed Quantity (One Set)

Lead Time Part Code Price in EUR /

Item

Vane 1 (TLe1) 46 18 months A2A50138925 _______

Vane 2 (TLe2) 48 18 months A2A50138926 _______

Vane 3 (TLe3) 25 26 18 months

A2A50006755 A2A50006754

_______

Vane 4 (TLe4) 28 27

18 months A2A50007257 A2A50007258

_______

Blade 1 (TLa1) 88 1 18 months

A2A50006546 A2A50006547

_______

Blade 2 (TLa2) 88 1

18 months A2A50218660 A2A50218661

_______

Blade 3 (TLa3) 62 1 18 months

A2A50006516 A2A50006517

_______

Blade 4 (TLa4) 44 18 months A2A50107664 _______


Customized Service Solutions Change Mode (CM)

Change Mode means the temporarily supply of new or refurbished major gas turbine parts for a series of major maintenance intervals at a rental price. Siemens provides a warranty for their complete major maintenance interval. At the end of a major maintenance interval the parts are returned to Siemens and (unless at the end of the term) replaced by Siemens. Customer bears no cost/risk with regard to scrap rates or repairs regarding the parts.

Reduced capital cost and reduced inventory

Refurbishment

Scheduled End of GT Life

set

Change Mode B&V Pool Change Mode B&V Pool

GTOperation

1 Cycle

Refurbishment

1 Cycle 1 Cycle1 Cycle

0

50

100

1. Cycle 2. Cycle 3. Cycle 4.Cycle

Standard

Change ModeInvestm

ent

Valu

e in %

Scr

ap R

isk

take

n by

cu

stom

er

Scr

ap R

isk

take

n by

cu

stom

er


Customized Service Solutions Long Term Maintenance Program (LTPM)

Self - Maintenance

Repair

Parts

Outageservices

Long-Term Maintenance Programs (LTMP) are managed programs for parts, parts repairs, program management and turnkey outage services for Siemens gas turbines, steam turbines, and generators.

LTMP

Outage-services

Repair

ExtendedWarranty Parts

ProgramMgmt.

Remote Diagnostic

System


Customized Service Solutions Operation & Maintenance (O&M)

Operations & Maintenance (O&M) (content in addition to all LTP Features)

O&M contracts cover all aspects of plant operation and maintenance, such as plant operationitself, routine and planned maintenance of the power plant, long term maintenance programsfor OEM equipment including remote monitoring and do offer the most extensive warranties.

O&M OperatingExperience

over40 contracts

Home Based

Backoffices

Highly Qualified

O&M Managers

• Highest Plant Availability

• Lowest Operating Risk

• Highest Profit

Power Diagnostics

Center

Integrated IT Solutions

e.g. SPPA M3000 (BFS++); Hybrix

OEM and CommissioningExperience of >

750.000 MW Fleet

Direct Access to

OEM Know How

Engineering TechnicalSupport


over40 contracts


over40 contracts

Home Based

Backoffices

Highly Qualified

O&M Managers

• Highest Plant Availability

• Lowest Operating Risk

• Highest Profit

Power Diagnostics

Center

Power Diagnostics

Center






750.000 MW Fleet


750.000 MW Fleet

Direct Access to

OEM Know How

Engineering TechnicalSupport


Customized Service SolutionsService Agreements

O&M

LTP

OPSA Sco

pe

Discount

StandardWarranty

Parts

Labour

Repair

RoutineMaintenance

Training

PlantOperation

PlantManagement

ExpandedScope

(ST, Geno)

Turnkey Outages

Unscheduled Outages

Valu

e

ProgramManage-

ment

CoveredEquipmentAvailability

PowerDiagnos-

tics

TermWarranty

GT,ST,Geno Performance

Warranty

PlantPerformanceWarranties

Full Access toOEM know-how

Unscheduled Outages

Plant Availability

Page 1 May, 2009 © Siemens SSK. 2009. All rights reserved. Energy Service Fossil Product Portfolio...

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Transcript of Page 1 May, 2009 © Siemens SSK. 2009. All rights reserved. Energy Service Fossil Product Portfolio...