Quanta Services and Northeast Utilities Expand Contract
February 23 2009 - 5:00AM
PR Newswire (US)
$200 Million Added to Existing Contract to Strengthen New England
Transmission Grid HOUSTON, Feb. 23 /PRNewswire-FirstCall/ -- Quanta
Services, Inc. (NYSE: PWR) and Northeast Utilities (NYSE:NU) today
announced the addition of $200 million in services and an extension
of two years to their existing multi-year contract under which
Quanta is providing transmission infrastructure services related to
NU's transmission build-out through 2015. The anticipated value of
the original contract, signed in December 2007, was $750 million
and it extended from 2008 to 2013. With this recent expansion, the
anticipated value of the contract is now $950 million through 2015.
Under the now eight-year contract, Quanta will continue to provide
labor, equipment and general project management for NU's
transmission projects throughout New England. "A strong
transmission grid is vital to New England's safety, security and
economic prosperity. Quanta's proven expertise in transmission
infrastructure services, nationwide scope and large workforce are
key elements in solving the transmission limitations in New
England," said Charles W. Shivery, chairman, president and chief
executive officer of Northeast Utilities. "This arrangement builds
on the ongoing success of the recently energized Middletown-Norwalk
project, where Quanta's expertise in providing transmission
construction services across 45 miles in Connecticut aided us in
completing the major project ahead of schedule by one year and
nearly $100 million below budget," Shivery said. "As New England's
energy future becomes more complex and demanding, we are continuing
efforts to improve the transmission system with infrastructure
projects that strengthen the grid and provide benefits to the
region's customers. We also see the possibility of
renewable-related projects in the future. This extended agreement
assures we have the expertise and resources available to meet our
future project work." John Colson, chairman and chief executive
officer of Quanta Services stated: "We share NU's commitment to
strengthening electric reliability and helping New England meet the
region's aggressive energy, environmental and economic goals. As a
regional and national transmission leader, NU is working to develop
New England energy solutions from diverse sources. We are committed
to enhancing the transmission infrastructure to improve that
access." About Northeast Utilities Northeast Utilities (NYSE:NU), a
Fortune 500 energy company based in Connecticut, operates New
England's largest energy delivery system. NU is committed to
safety, reliability, environmental leadership and stewardship, and
expanding energy options for its more than 2 million electricity
and natural gas customers. For more information on Northeast
Utilities, visit http://www.nu.com/. About Quanta Services Quanta
Services is a leading specialized contracting services company,
delivering infrastructure network solutions for the electric power,
natural gas, telecommunications and cable television industries.
The company's comprehensive services include engineering,
designing, installing, repairing and maintaining network
infrastructure nationwide. With operations in all 50 states and
Canada, Quanta has the manpower, resources and expertise to
complete projects that are local, regional, national or
international in scope. This press release (and any oral statements
regarding the subject matter of this press release) contains
forward-looking statements intended to qualify for the "safe
harbor" from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include,
but are not limited to: the expected value of the agreement,
including the additional amount, between Quanta and Northeast
Utilities and the scope, services, term and results of any related
projects awarded under the agreement, as well as statements
reflecting expectations, intentions, assumptions or beliefs about
future events and other statements that do not relate strictly to
historical or current facts. Although Quanta's management believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. These statements can be affected by
inaccurate assumptions and by a variety of risks and uncertainties
that are difficult to predict or beyond our control, including,
among others, successful performance and completion of the
agreement and the projects awarded thereunder; failure to realize
the anticipated value of the agreement; adverse changes in economic
and financial conditions, including the recent volatility in the
capital markets; cancellation and termination provisions present in
the agreement; delays or changes in scope of projects awarded under
the agreement, including those that may result from future capital
constraints; the inability of our customer to pay for services we
provide; future growth in the electric utility industry; trends in
relevant markets; and other factors affecting the business of the
respective parties generally, including risks detailed in Quanta's
Annual Report on Form 10-K for the year ended December 31, 2007,
Quanta's Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2008, June 30, 2008 and September 30, 2008 and any other
documents of Quanta filed with the Securities and Exchange
Commission (SEC). Should one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those expressed or implied in any
forward-looking statements. You are cautioned not to place undue
reliance on these forward-looking statements, which are current
only as of this date. Quanta does not undertake and expressly
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Quanta further expressly disclaims any written or
oral statements made regarding the subject matter of this press
release by any third party. For a discussion of these risks,
uncertainties and assumptions, investors are urged to refer to
Quanta's documents filed with the SEC that are available through
the company's web site at http://www.quantaservices.com/ or through
the SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at http://www.sec.gov/. Contacts: James Haddox, CFO Frank
Poirot Reba Reid Northeast Utilities Quanta Services, Inc.
860-665-3409 713-629-7600 DATASOURCE: Quanta Services, Inc.
CONTACT: James Haddox, CFO, or Reba Reid, both of Quanta Services,
Inc., +1-713-629-7600; or Frank Poirot of Northeast Utilities,
+1-860-665-3409 Web Site: http://www.quantaservices.com/
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