General Electric (GE) Has a Power Turbine Problem

GE is facing yet another power problem as utility companies across different regions like Japan, Taiwan, France and at multiple U.S. sites have shut down or are planning to shut down GE’s gas turbines.

According to more than a dozen interviews with plant operators and industry experts, at least 18 of the 55 new HA-model turbines that GE has shipped so far have been shut down by the power plant operators citing repairs as the reason.

Following the recent GE turbine blade failure in Texas, these shutdowns are hurting the company as it comes at a time when GE is grappling with financial losses and a drop in orders for the massive generators supplying electricity to hundreds of thousands of homes.

Although the 126-year-old conglomerate has declined to say how many turbines have been shut down to date, it has set aside $480 million to repair its 9HA, 7HA and 9FB model turbines as it restructures its power business.

In an interview, GE gas power systems CEO Chuck Nugent played down the significance of turbine shutdowns and the French data saying that GE turbines are performing "extremely well," despite the need for "early maintenance" to fix the blades.