Several recent trends in the power industry have made robust long-term service agreements increasingly important for electric cooperatives that own and operate gas turbines. At the same time, LTSA negotiations are extremely complex processes. Well-negotiated LTSAs can provide many benefits, including improved turbine reliability and longevity, technical knowledge transfer, more predictable maintenance costs, competitive pricing, and strong collaboration. Weak LTSAs can lead to significant financial and reliability risks. This Surveillance article discusses LTSAs and reviews important considerations for co-ops.
