( Reuters) – Quarantines and lockdowns at big U.S. power plants are threatening to squeeze a multibillion-dollar slice of revenue that General Electric Co is relying on to assist lift profits.
FILE PHOTO: The General Electric Co. logo is seen on the business’s home office building in Boston, Massachusetts, U.S. July 23,2019 REUTERS/Alwyn Scott
A number of significant U.S. utilities with fleets of GE generators told Reuters they are halting or delaying upkeep, much of it handled by GE, due to the fact that the work is not possible under social distancing restrictions. The work can be safely delayed in part because coronavirus lockdowns have actually cut power demand, the utilities say.
Profits from fixing power plants is increasingly important for GE now that the Boston-based corporation has actually slimmed down to aviation, power devices and medical gadgets. Wall Street’s issues have focused on the aviation service, however when GE reports its first-quarter results on Wednesday, it might need to explain difficulties to power too.
” We have deferred regular maintenance activities to the limitation possible at these facilities however are still performing the work required to preserve reliability,” Jim Hopson, a spokesperson for the Tennessee Valley Authority, which operates across 7 states, told Reuters. It operates a fleet of more than a lots large