Author: Vitaliy Dadalyan

GE power CEO reveals problem with new turbine model, shares drop

GE power CEO reveals problem with new turbine model, shares drop

The company has discovered an "oxidation issue" that affects the lifespan of blades in its HA-Class turbines, a major product for GE's power division, GE Power Chief Executive Russell Stokes said in a letter posted on LinkedIn. "Obviously, this was a frustrating development, for us, as well as for our customers," Stokes said in the blog, first posted on Wednesday, adding that the company had implemented a fix that had the turbines working within targeted parameters. J.P. Morgan analyst Stephen Tusa said in a research note on Thursday that the problem appeared to have resulted in a broken turbine blade at a power plant in Texas owned by Exelon , based on discussions with GE and Exelon.


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