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Long Term Service Agreement Definition

To illustrate this point, imagine an LTSA that explicitly assumes that the owner will operate the gas turbine at base load level with a high overall annual ratio between hours and takeoffs. If market conditions change so that the owner instead operates the turbine as a “Peaker” unit with a lower annual hourly to start-up ratio, the OEM may be required to conduct a combustion inspection that would not otherwise have been required under a baseload operating profile. The supplementary incineration inspection should, by definition, be part of the planned maintenance work required by the OEM under the LTSA; an unforeseen part, but part of it. However, an additional work arrangement, such as that described above, would inadvertently characterize that work as “extra work”. .

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