North American Power Plant Services Markets

Changing Operation Philosophies and Outdated Service Agreements Impair Pace of Growth of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 (O&M) paradigm of both old and new power

plants in North America.”

Energy and Power Generation Analyst Team

Frost & Sullivan

• 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

Industry Trends

• 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 O&M, LG&E, Sempra Energy Solutions and Connectiv Operating Services are increasingly entering the full O&M market

Industry Trends (Cont’d)

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

Key Features

• 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

What We Offer

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

Who Will Benefit?

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

Who Will Benefit? (Cont’d)

What’s Included

• Maintenance, repair and overhaul for boilers, combustion

• Turbines and steam turbines

• Full O&M market prospects for steam turbine and gas turbine

power plants

• Contract analysis

• Pricing strategy

• Competitive analysis and market share of top participants

• Strategic recommendations

Key Market Participants

AEP Pro Serv, Inc.ALSTOM Canada, Inc.ALSTOM PowerAnsaldo 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 O&M ServicesEntergy Operational Services, Inc.Foster Wheeler Ltd.GE Power SystemsGenerator and Motor Services, Inc. (GMS)Hickham Industries, Inc.Hitachi America Ltd. / Sulzer Turbomachinery ServicesIndustrial Repair Service, Inc.Irwin IndustriesLockerbie & Hole, Inc.Lovegreen Turbine Services, Inc.

Mechanical Dynamics and Analysis LLCMitsubishi Power Systems, Inc.Mitsui Babcock Energy Ltd.National Electric Coil (NEC)North American Energy ServicesPIC Energy GroupPrimesouth, Inc.ReGENco LLC Rolls-Royce Corp.S & S Turbine Services Ltd.Siemens Westinghouse Power Corp.STORK H&E Turbo Blading, Inc.Triumph Gas Turbine Services GroupTurbine Generator Maintenance, Inc.Turbine Resources Unlimited, Inc.Turbine Technology Service Corp.UTC Power/Pratt & Whitney Power SystemsVA Tech America Corp.Wartsila Operations, Inc.Wood Group Power, Inc.

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(877.463.7876)

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