Quanta Services, Inc.
) through its subsidiary, Quanta Power Generation, Inc., received
an engineering, procurement and construction contract from Con
Edison Development (CED) for two of its photovoltaic (PV)
facilities. The total capacity of the facilities is about 40
megawatts (MWac) located in Kings and Tulare counties,
Two special purpose entity (SPE) subsidiaries of CED, SPS
White River LLC and SPS Corcoran LLC, are involved in this
contract. The scope of work for Quanta Services includes of the
complete design, engineering, procurement and installation
services for all equipment required for the two 20MWac projects.
About 176,000 polycrystalline PV solar modules will be mounted to
a single-axis tracking system for both the facilities. The area
covered by these facilities is more than 350 acres.
From Oct 2012, the pre-construction activity on the project
was started while the project is scheduled to be completed in
2013. New job opportunities will be created through the
construction of these facilities which will provide clean and
Quanta Services is benefiting from increased spending in the
Electric Power segment on projects to upgrade and deploy their
electric power transmission infrastructure to improve system
reliability and to deliver renewable electricity from new
generation sources to demand centers. Favorable industry
legislation is also generating incentives and a positive
environment for utilities to invest in their electrical
infrastructure, particularly transmission infrastructure.
However, project delays can be a major cause of concern for
the company. High prices of solar panel led the developers to
wait for a decline in price. Further, low natural gas prices and
project financing challenges affected wind market. Reoccurrences
of any such happening will prove detrimental to the company's
Quanta Services Inc. is a leading national provider of
specialty contracting services, and is one of the largest
contractors serving the transmission and distribution sector of
the North American electric utility industry.
Quanta Services currently has a Zacks Rank #1 (Strong Buy).
Its close rivals such as,
Jacobs Engineering Group
Aecom Technology Corporation
) have a Zacks Rank #2 (Buy).
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