North American Power Plant Services Markets Changing Operation Philosophies and Outdated Service Agreements Impair Pace of Growth of Power Plant Services

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North American Power Plant Services
MarketsChanging Operation Philosophies and
Outdated Service Agreements Impair Pace of Growth
of Power Plant Services

• Overcapacity, the Enron scandal, and rising gas
  prices have effected a revamp in the operation
  and maintenance (OM) paradigm of both old and
  new power plants in North America.

Energy and Power Generation Analyst Team Frost
Sullivan
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Industry Trends

• Upheaval in the U.S power sector has created
  uncertainty regarding existing contracts and
  signing of new service agreements
• Large number of plant owners have postponed
  annual outages during 2002, citing economic down
  turn and depressed electricity prices as reasons
• With the demand for new power plants drying up,
  all the original equipment manufacturers (OEM)
  are increasingly focusing on the service market
  as the major source of revenue, thus increasing
  its competition

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Industry Trends (Contd)

• While the utilities and public power producers
  are warming up to the idea of large scale
  outsourcing of plant services, certain segment of
  industrial end-users are still averse to losing
  operational control of power generation assets
• Large independents such as the Wood Group and
  Hickham are emerging as a major competition to
  the OEMs both in supply of spares and services
• The utility affiliated service companies
  including Edison OM, LGE, Sempra Energy
  Solutions and Connectiv Operating Services are
  increasingly entering the full OM market

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Key Features

• Frost Sullivan provides
• Drivers, restraints, and industry challenges
• Market sizing
• Revenue forecasts
• Demand analysis by geographic region
• Market trends by customer type
• Pricing strategy
• Competitive analysis
• Product life cycle analysis
• Strategic recommendations

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What We Offer

• In-depth coverage of both U.S. and Canadian
  markets
• Proven methodology encompassing extensive primary
  and secondary data and research
• Focused information and strategies that cover
  business and technology issues
• Credible data and analysis highlighting industry
  dynamics
• Winning strategies to help you create precise
  business plans

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Who Will Benefit?

• Current Market Participants
• Find out how large the North American power plant
  services markets are
• Find out how you compare to the competition
• Assess current and future drivers and restraints
• Determine and exploit new market opportunities
• Find out the market size and service potential
  for major equipment such as boilers, steam
  turbines and gas turbines
• New Entrants
• Analyze challenges associated with the industry
• Look out for possible alliance or acquisition
  targets

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Who Will Benefit? (Contd)

• OEMs
• Find out which competitors are getting involved
  in the services market
• Understand the demand for services by plant type
  and size
• Investment Community
• Determine which participants will outperform the
  competition
• Assess what investment is justified into the
  services sector
• Power Plant Owners
• Determine which vendors are active in the market
  and who are possible new entrants
• Understand the cost level of service activities
• Learn about technological and other market trends

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Whats Included

• Maintenance, repair and overhaul for boilers,
  combustion
• Turbines and steam turbines
• Full OM market prospects for steam turbine and
  gas turbine
• power plants
• Contract analysis
• Pricing strategy
• Competitive analysis and market share of top
  participants
• Strategic recommendations

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Key Market Participants
AEP Pro Serv, Inc. ALSTOM Canada, Inc. ALSTOM
Power Ansaldo Energy, Inc. Babcock Borsig Power,
Inc. Babcock Wilcox Canada Ltd. Babcock
Wilcox Co. / McDermott International Baker
Energy Services/ Michael Baker Corp. Conectiv
Operating Services Co. (COSC) Edison OM
Services Entergy Operational Services,
Inc. Foster Wheeler Ltd. GE Power
Systems Generator and Motor Services, Inc.
(GMS) Hickham Industries, Inc. Hitachi America
Ltd. / Sulzer Turbomachinery Services Industrial
Repair Service, Inc. Irwin Industries Lockerbie
Hole, Inc. Lovegreen Turbine Services, Inc.
Mechanical Dynamics and Analysis LLC Mitsubishi
Power Systems, Inc. Mitsui Babcock Energy
Ltd. National Electric Coil (NEC) North American
Energy Services PIC Energy Group Primesouth,
Inc. ReGENco LLC Rolls-Royce Corp. S S
Turbine Services Ltd. Siemens Westinghouse Power
Corp. STORK HE Turbo Blading, Inc. Triumph Gas
Turbine Services Group Turbine Generator
Maintenance, Inc. Turbine Resources Unlimited,
Inc. Turbine Technology Service Corp. UTC
Power/Pratt Whitney Power Systems VA Tech
America Corp. Wartsila Operations, Inc. Wood
Group Power, Inc.
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