Quanta Services, Inc. (PWR - Analyst Report) recently announced that its operating unit Valard Construction has been selected by ATCO Electric to set up transmission infrastructure for the Eastern Alberta Transmission Line (EATL) project.
As per the terms of the agreement, Valard will set up approximately 310 miles (500 kilometers) of 500-kilovolt high-voltage direct current (HVDC) transmission line between the Edmonton and Calgary regions, which are favorably located at the center of the Alberta province. It is the primary supply and service hub for Canada's oil sands and other northern resource industries.
Approximately 300 km south of the capital is Calgary, Alberta's largest city and a major distribution and transportation hub. Therefore, this transmission line will be connecting two very resourceful regions of the province.
Valard has already started pre-construction activities on the project and the construction activities are expected to commence soon without delay. Valard will be responsible for the construction phase of the project, which includes foundation, tower assembly and erection and conductor stringing. The EATL transmission line is expected to be complete by the end of 2014.
The growing demand for electricity in southern and central Alberta is expected to surpass the current capacity of the 240-kilovolt transmission system, which delivers power to the local area. The Eastern Alberta Transmission Line is a critical transmission infrastructure project designed to improve grid reliability now and for the future as well.
Given the expertise and competence of Valard in successfully and safely executing similar contracts, ATCO Electric selected Valard for this vital project. Although Alberta has been growing rapidly for many years, there have been no major upgrades to the north-south transmission infrastructure for the past 20 years.
Quanta Services currently carries a Zacks Rank #3 (Hold) while its competitors such as AECOM Technologies Corp. (ACM - Analyst Report), Jacobs Engineering Group Inc. (JEC - Analyst Report) and Chicago Bridge & Iron (CBI - Analyst Report) carry a Zacks Rank #2 (Buy).