U.S. T&D Developers Line Up $3.8 Billion in Project Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--As concerns grow across the U.S. about sufficient power-generation capacity to meet rising demand, the transmission and distribution (T&D) segment is facing its own challenges, particularly in replacing outdated equipment and structures. Industrial Info is tracking more than $3.8 billion worth of U.S.-based T&D projects that are set to begin construction in the fourth quarter, with more than half of the spending set for fast-growing areas of the Southwestern and Great Lakes regions.

Click on the image at right for a graph detailing the top 10 U.S. states for T&D projects set to kick off from October through December.

Activity in the Great Lakes region is led by American Electric Power Company Incorporated's (NASDAQ:AEP) (AEP) (Columbus, Ohio) New Liberty-East Leipsic project in northwestern Ohio, which involves upgrading about 20 miles of transmission line from 34.5 to 138 kilovolts (kV), as well as replacing aging poles and improving substations. The cornerstone of the project--upgrades to lines from Leipsic to McComb--is expected to run through early 2026.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about the line upgrades from a detailed project report. The full New Liberty-East Leipsic project includes a series of substation overhauls, including:

• the construction of a new substation in McComb; see project report
• upgrades to the East Leipsic Substation; see project report
• upgrades to the New Liberty Substation in Findlay; see project report

Charles Zebula, the chief financial officer of AEP, said in the company's most recent quarterly earnings-related conference call that the company expects to increase its investment in T&D significantly in the coming years, largely due to growing demand from data center projects in states such as Ohio and Texas: "Our operating footprint and robust transmission system position us perfectly to grow along [artificial intelligence] and other technologies and industries in need of access to affordable and reliable power."

Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota) also is investing in the Great Lakes region, with a major project set to kick off before the end of the year: the $132 million relocation of a transmission line from Ashland, Wisconsin, to Ironwood, Michigan. Xcel plans to reposition a roughly 35-mile segment of the line, which is nearing the end of its useful life, without making any changes to the substations on either end; it says the line is "critical to providing reliable power to northern Wisconsin and Upper Peninsula Michigan customers." Subscribers can learn more from a detailed project report.

In Texas, which accounts for $1.25 billion of the roughly $3.8 billion in fourth-quarter T&D kickoffs, Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) expects to begin construction of its $43.4 million Sandling Substation in Port Arthur to support load stability in the area. In the state's capitol city, publicly owned utility Austin Energy is working toward a five-mile line upgrade to replace aging equipment and better serve a growing area. Subscribers can read detailed reports on the Port Arthur and Austin projects.

Developers in the New England region are investing more in reliability projects to improve service in heavily populated areas. Eversource Energy (NYSE:ES) (Hartford, Connecticut), a regional utility, aims to rebuild, replace and reconduct about 16 miles of line between Haddam and Quaker Hill, Connecticut, while National Grid plc (London, England) expects to build about 12 miles of line from Fall River to Wareham, Massachusetts, to support the local grid. Subscribers can read detailed reports on the Connecticut and Massachusetts projects.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for U.S. T&D projects that are set to begin construction in the fourth quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).