Below are details on the Factory Protection Plan (FFP) provided by Chenega for the micro-turbine:
• The FFP is available through a separate contract from the factory and is executed by Chenega Energy.
• The original estimate of $13,000 for the FFP was included in the Chenega contract for APP4, but will most likely be deferred to APP5. This annual fee for “Plan C” (see attached), which is a 9 year, parts only plan that includes overhaul of the micro-turbine. It covers all parts, scheduled and unscheduled, for 9 years, and includes the complete replacement of the turbo generator, often between 50,000 and 65,000 hours. Chenega has stated that the scheduled maintenance document requires an estimated $8,000 in replacement parts