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This paper considers a condition-based maintenance (i.e. CBM) model for the hydro generating unit in the deregulated power system. As the generating loss varies according to the time-varying inflows, the economic dependence among the critical component of the generating unit is dynamic. To reduce the maintenance cost effectively, we propose an inflowdependent control-limit policy instead of the constant control-limit policy for CBM optimization. An example for the hydro generating unit isdoi:10.14257/ijsia.2014.8.2.10 fatcat:ahng43f5zbhivigxsb3ll33s5e