Evolving Long Term Maintenance Agreements and Risk Mitigation Strategies

CEIS | Power President Jeff Fassett Speaks at the recent EPIC (Energy Progress & Innovation Conference) Industry Event to Discuss Shifting Risk, Expanding Scope & Greater Owner Value in the LTSA Market

Critical Energy Infrastructure Services (CEIS) through its CEIS | Power group, presented an in-depth State of the Market session examining the evolution of Long Term Service Agreements (LTSAs) and their growing role in managing operational risk, performance guarantees, and unplanned outage response across the power generation sector.

Since their introduction in the mid-1990s, LTSAs have transformed from basic support contracts into sophisticated commercial frameworks that directly influence asset reliability, financial exposure, and long-term plant value. Once limited primarily to advanced F-class gas turbines, LTSAs are now widely applied across E-class units, aero-derivatives, steam turbines, and reciprocating internal combustion engines.

"The session emphasized the industry shift away from historically contractor-centric agreements toward more balanced, owner-focused structures," says Jeff Fassett. These modern LTSAs are designed to reduce risk for owners and operators by addressing critical areas such as limitation of liabilities, warranty structure, open pool versus closed pool strategies, parts availability, fleet-wide emergent issues, and service bulletin management. Special attention was given to clearly defining scope of work during outages and aligning outage planning with operational priorities.

Performance guarantees were another central focus, including output, heat rate, exhaust flow, emissions compliance, and outage duration. As market conditions tighten and regulatory pressures increase, these guarantees play a critical role in ensuring predictable performance and protecting revenue.

Unplanned outage response capabilities were also examined, highlighting the importance of a defined response plan, rapid timing, assured parts access, and crew availability. These factors can significantly reduce downtime and mitigate financial and operational impacts when unexpected events occur.

The session was led by Jeff Fassett, CEIS | Power’s President, who drew on decades of industry experience to outline current LTSA trends, the expanding role of non-OEM service providers, and what asset owners should expect in the next generation of service agreements.

CEIS | Power is a nationally recognized leader in project solutions and services supporting energy infrastructure and the national security mission. They partner with owners and operators to deliver clarity, confidence, and long-term value across complex operational environments.

HOW CAN WE HELP? To learn how CEIS | Power can support your next project, strengthen your service agreements, and improve operational resilience, contact us today to start the conversation.

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