Assessment:
No initial cost to assess existing agreements
- Client & LTSA Options sign an NDA
- LTSA Options reviews existing agreement(s), some operational information
- LTSA Options provides, at no cost, an assessment of the existing situation with any potential savings. A proposal how to achieve the estimated savings will be included.
Examples:
LTSA Options has produced savings through renegotiations and through the negotiation of termination fees. The savings for our projects range up to over $100 Million, with the actual savings depending on the number of turbines, the length of the agreement term, and when and how the current agreement was negotiated. Most situations produce savings that are significant when compared to the current agreements and it is rare that an agreement cannot be improved.
GE 7FA plants: An owner with multiple plants in separate locations all operating under an OEM LTSA. The assessment determined a method to renegotiate or terminate the agreements through a complicated ‘non-competitive’ clause. We identified the goals of the company and using our process saved over 30% of the current costs.
Siemens 501F plants: An owner had multiple plants each with a separate OEM LTSA. The assessment determined that it was financially prudent to use the buyout clause of the agreement and the LTSA Options process confirmed the assessment with significant savings over multiple years even after paying the termination costs.
Recent Transactions by LTSA Options Principals
- Multinational IPP: renegotiated LTSA involving two gas turbines in Oregon.
- Multinational IPP: negotiated LTSA involving six gas turbines in Western Australia.
- Regional IPP: renegotiated LTSA involving two gas turbines in Texas.
- Regional IPP: renegotiated LTSA involving three gas turbines in Arizona.
- Regional IPP: renegotiated LTSA involving two gas turbines in New York.
- Regional IPP: renegotiated LTSA involving two gas turbines in Illinois.
- Fortune 100 Oil Company: renegotiated LTSA involving two gas turbines in England.
- Fortune 100 Oil Company: negotiated LTSA involving one gas turbine in England.
- Fortune 500 U.S. Utility: renegotiated LTSA involving two gas turbines in Mexico.
- Fortune 500 U.S. Utility: renegotiated LTSA involving 8 gas turbines in Nevada.
- Fortune 500 U.S. Utility: renegotiated LTSA involving 4 gas turbines in Nevada.
- Regional Utility: negotiation support for 6 Siemens gas turbines in the Philippines.
- Multinational IPP: supported purchase and negotiations of LTSA for 4 gas turbines in Mexico.
- Regional Utility: renegotiations of maintenance agreement for 9 GE 7FA turbines
- Regional IPP: negotiation support for 6 GE 9FA gas turbines in Asia
- Multinational IPP: negotiated reduction in termination fees in Dubai.
- Regional IPP: renegotiated LTSA for three GE gas turbines in Asia