Northeast Utilities ( NU ) inked a supplemental agreement with Micromem Applied Sensor Technologies Inc., a subsidiary of Micromem Technologies Inc., in an attempt to further strengthen its expertise in transformer sensor technology. The latest deal is the extension of a $5.4 million joint development agreement, signed on Dec 11, 2013, between the two companies.
Per the agreement, Northeast Utilities and Micromem Applied Sensor Technologies will jointly develop technologies to improve functions and durability of the utility transformer equipment using sensor technology.
The companies are now gearing up for prototype development, field-testing and system optimization. Northeast Utilities and Micromem Applied Sensor Technologies will investment an extra $0.2 million for developing the prototype.
Once manufacturing commences, Northeast Utilities will deploy the improved sensor systems at its utility facilities and integrate it with the transformers.
Positive outcomes from this technology development program will enable Northeast Utilities to better operate and supervise its transformer systems.
Northeast Utilities continues to invest substantially in constructing modern infrastructure at its utility systems. The company invested around $1.09 billion during the first nine months of 2014 in various transmission and distribution ventures.
Northeast Utilities is currently building the Interstate Reliability Project and the Greater Hartford Central Connecticut Reliability Project. The company had previously completed the Greater Springfield Reliability Project under the New England East-West Solution.
These initiatives will collectively allow Northeast Utilities to improve its service standards and reliability along with reducing the frequency and duration of transformer outages.
In the first nine months of 2014, Northeast Utilities' operating cash flow surged 19.3% year over year to around $1.4 billion. A favorable cash inflow supports the company's systematic capital spending program.
Northeast Utilities currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the same industry include Brookfield Infrastructure Partners L.P. ( BIP ), Wisconsin Energy Corp. ( WEC ) and PG&E Corp. ( PCG ). Brookfield Infrastructure and Wisconsin Energy hold a Zacks Rank #1 (Strong Buy), while PG&E carries the same Zacks Rank as Northeast Utilities.
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