Jan. 18, 2011 (PR Newswire) --
MINNEAPOLIS, Jan. 18, 2011 /PRNewswire/ -- CapX2020 announced it selected MYR Group (Nasdaq: MYRG) and Quanta Services, Inc. (NYSE: PWR) to provide construction services for the CapX2020 Group 1 transmission line projects. CapX2020 is a joint initiative of 11 transmission-owning utilities in Minnesota and the surrounding region proposing to build more than 700 miles of new transmission infrastructure under what is expected to be the largest transmission expansion in the upper Midwest in 30 years. The projects include three proposed 345 kilovolt (kV) transmission lines and one proposed 230 kV transmission line.
The CapX2020 lead utilities are working toward agreement frameworks for the initial projects during first quarter 2011. The first phase of the CapX2020 construction work will be performed by Quanta Services' M.J. Electric operating unit and MYR Group's MYR Transmission Services, Inc. ("MYRT").
The construction projects will be assigned to each contractor over the next five years. The first contract, for the Bemidji-Grand Rapids project, is expected to be signed between M.J. Electric and CapX2020 by the end of first quarter 2011. Under the proposed agreement, M.J. Electric will install approximately 70 miles of 230 kV transmission line between the Wilton Substation near Bemidji, Minnesota, and the Boswell Substation in Grand Rapids, Minnesota. Construction is expected to begin in the summer of 2011 with a projected in-service date of late 2012.
The second contract, for the segment between St. Cloud and Alexandria, is expected to be signed between MYR Group's MYRT and CapX2020 in early second quarter 2011. Under the proposed agreement, MYRT will install approximately 60 miles of 345 kV transmission line between the Quarry Substation near St. Cloud, Minnesota, and the Alexandria Switching Station (future Substation) in Alexandria, Minnesota. Construction is currently scheduled to begin late fall of 2011 with a projected in-service date of 2013.
CapX2020 is a joint initiative of 11 transmission-owning utilities in Minnesota and the surrounding region to upgrade and expand the electric transmission grid to ensure continued reliable and affordable service. The CapX2020 Group 1 projects include three proposed 345 kV transmission lines and a proposed 230 kV line. The projects are projected to cost nearly $2 billion and cover a distance of more than 700 miles. The new infrastructure will provide a foundation for the region's projected electric growth as well as connect into renewable energy sources in southern and western Minnesota and the Dakotas. Along with Great River Energy and Xcel Energy, utilities that expect to participate in one or more of the CapX2020 projects are: Central Minnesota Municipal Power Agency, Dairyland Power Cooperative, Minnesota Power, Minnkota Power Cooperative, Missouri River Energy Services, Otter Tail Power Company, Rochester Public Utilities, Southern Minnesota Municipal Power Agency and WPPI Energy.
About MYR Group Inc.
MYR Group Inc. is a holding company of specialty construction service providers. Through subsidiaries dating back to 1891, MYR is one of the largest national contractors servicing the transmission and distribution sector of the United States electric utility industry. Transmission and distribution customers include electric utilities, cooperatives and municipalities. The company also provides commercial and industrial electrical contracting services to facility owners and general contractors in the western United States. MYR Group's comprehensive services include turnkey construction and maintenance services for the nation's electrical infrastructure.
About Quanta Services
Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, natural gas and pipeline and telecommunication industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. Additionally, Quanta licenses point-to-point fiber optic telecommunications infrastructure in select markets and offers related design, procurement, construction and maintenance services. With operations throughout North America, 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 cost of the CapX2020 projects, which includes services beyond the construction services expected to be performed by Quanta and MYRT; the scope, services, term and results of the construction projects to be performed, and the expected time frames for contract award and project completion, 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 and MYR Group'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, the final terms and conditions of the contracts relating to the construction of the projects; the successful performance and completion of the contracts and the projects awarded thereunder; total costs of the projects, which include permitting, engineering, right-of-way acquisition, materials and construction, may be more or less than estimated; the potential for incurrence of damages for schedule delays or performance shortfalls, including as a result of warranty claims following completion; the failure of Quanta's and MYRT's subcontractors to perform their obligations, including warranty obligations, under their subcontracts; adverse changes in economic conditions and trends in relevant markets; future growth in the electric utility industry; delays or changes in scope of projects awarded under the contracts; the inability of customers to pay for services; cancellation and termination provisions present in the contracts; and other factors affecting the business of the respective parties generally, including risks detailed in Quanta's and MYR Group's Annual Reports on Form 10-K for the year ended December 31, 2009, Quanta's and MYR Group's Quarterly Reports on Form 10-Q for each quarter ended in fiscal year 2010 and any other documents of Quanta or MYR Group 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 and MYR Group do not undertake and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta and MYR Group further expressly disclaim 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 or MYR Group's documents filed with the SEC that are available through the companies' web sites at www.quantaservices.com or www.myrgroup.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov.
Quanta Services Contact:
MYR Group Contact:
(612) 330-7697 (office)
(612) 201-7538 (mobile)
Kip Rupp, DRG&L