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Xcel Energy (XEL) to Deploy Drones, Lowers Maintenance Cost
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Xcel Energy Inc. (XEL - Free Report) received the approval from Federal Aviation Administration (“FAA”) to use drones beyond the operators’ vision and utilize them to survey the transmission lines and perform other operations that require consistent monitoring.
Over the past three years, Xcel Energy is using drones in their coal-fired plants to inspect equipments. In 2017, the company got the approval from FAA to use them for power lines inspection, within the operator’s vision. Following the approval, Xcel Energy will deploy the drones for the survey of their transmission line in Denver area. The company plans to seek further permission from FAA to inspect its 320,000 miles of electricity and natural gas infrastructure located in different regions.
Technology to Boost Operations
Xcel Energy operates in eight Western and Midwestern States. Half of the states are tornado prone areas. The electric transmission and distribution lines as well as natural gas pipelines are expected to be weather resistant. Proper maintenance and repair of infrastructure enables the company to provide 24x7 services amid difficult climatic conditions. Drones ensure early detection of faults and damages of the electric transmission and distribution lines, which lower chances of outages and increase reliability of services.
However, the drones will not replace previous modes of inspection and detection. The company believes that drones have advantages over trucks, helicopters or fixed-wing aircraft. The inspection of lines will be completed at a faster pace and lower related costs, which will benefit consumers.
Drone used by Peers
Utility companies are investing regularly to provide safe, clean and reliable service to customers. Additionally, the companies are adopting new technologies to maintain and inspect their expansive infrastructure. Usages of drones are yet to become common among all utility service providers in the United States. However, we have seen FirstEnergy Corporation (FE - Free Report) and PPL Corporation (PPL - Free Report) among others to use drones for the maintenance of infrastructure.
Considering the advantage of drones over traditional methods of inspection and maintenance of essential electrical infrastructure, we expect to witness increasing usage of the same among other providers as well.
Price Movement
In the last 12 months, shares of Xcel Energy have returned 4.7% compared with its industry’s rise of 2.3%.
Zacks Rank& Other Stock to Consider
Xcel Energy has a Zacks Rank #2 (Buy).
Investors can consider CenterPoint Energy (CNP - Free Report) from the same space, which flaunts a Zacks Rank #1 (Strong Buy). CenterPoint delivered an average earnings surprise of 11.50% in the trailing four quarters. Expected EPS growth for the next five years is 5.88%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Xcel Energy (XEL) to Deploy Drones, Lowers Maintenance Cost
Xcel Energy Inc. (XEL - Free Report) received the approval from Federal Aviation Administration (“FAA”) to use drones beyond the operators’ vision and utilize them to survey the transmission lines and perform other operations that require consistent monitoring.
Over the past three years, Xcel Energy is using drones in their coal-fired plants to inspect equipments. In 2017, the company got the approval from FAA to use them for power lines inspection, within the operator’s vision. Following the approval, Xcel Energy will deploy the drones for the survey of their transmission line in Denver area. The company plans to seek further permission from FAA to inspect its 320,000 miles of electricity and natural gas infrastructure located in different regions.
Technology to Boost Operations
Xcel Energy operates in eight Western and Midwestern States. Half of the states are tornado prone areas. The electric transmission and distribution lines as well as natural gas pipelines are expected to be weather resistant. Proper maintenance and repair of infrastructure enables the company to provide 24x7 services amid difficult climatic conditions. Drones ensure early detection of faults and damages of the electric transmission and distribution lines, which lower chances of outages and increase reliability of services.
However, the drones will not replace previous modes of inspection and detection. The company believes that drones have advantages over trucks, helicopters or fixed-wing aircraft. The inspection of lines will be completed at a faster pace and lower related costs, which will benefit consumers.
Drone used by Peers
Utility companies are investing regularly to provide safe, clean and reliable service to customers. Additionally, the companies are adopting new technologies to maintain and inspect their expansive infrastructure. Usages of drones are yet to become common among all utility service providers in the United States. However, we have seen FirstEnergy Corporation (FE - Free Report) and PPL Corporation (PPL - Free Report) among others to use drones for the maintenance of infrastructure.
Considering the advantage of drones over traditional methods of inspection and maintenance of essential electrical infrastructure, we expect to witness increasing usage of the same among other providers as well.
Price Movement
In the last 12 months, shares of Xcel Energy have returned 4.7% compared with its industry’s rise of 2.3%.
Zacks Rank & Other Stock to Consider
Xcel Energy has a Zacks Rank #2 (Buy).
Investors can consider CenterPoint Energy (CNP - Free Report) from the same space, which flaunts a Zacks Rank #1 (Strong Buy). CenterPoint delivered an average earnings surprise of 11.50% in the trailing four quarters. Expected EPS growth for the next five years is 5.88%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>