U.S. to See $6.2 Billion in Transmission, Distribution Kickoffs this Summer

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Researched by Industrial Info Resources (Sugar Land, Texas)--The southwestern area of the U.S. is a longstanding political flashpoint, with debates about border security and a growing energy-development market often dominating the news. But the area is one of several across the country where a growing population is fueling demand for transmission and distribution (T&D) projects. Industrial Info is tracking more than $6.2 billion in active T&D projects that are set to begin construction across the U.S. this summer, with Texas leading the way with more than $1 billion worth.

Click on the image at right for a graph detailing U.S. T&D projects set to begin construction from now through the end of September, by state.

Texas' Permian Basin has received much attention for its growing energy supply needs in the past year, but the opposite side of the Lone Star State also is in need of transmission relief. Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) is preparing to begin construction on its estimated $130 million Hartburg-Sabine Junction project, which is designed to connect and improve the network across the Orange, Newton and Jasper counties of East Texas. It is expected to alleviate longstanding energy congestion issues.

NextEra Energy Transmission Midwest LLC, a subsidiary of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), was selected as developer late last year; in March, the U.S. Federal Energy Regulatory Commission (FERC) authorized the subsidiary to recover all "prudently incurred" costs related to its investment in the Hartburg-Sabine Junction project. The estimated $86.2 million line from Deweyville to Orange, Texas, runs 30 miles and will be bolstered by a $21.2 million substation upgrade in Deweyville and a $22.8 million substation upgrade in Orange. For more information, see Industrial Info's project reports on the transmission line and upgrades in Deweyville and Orange.

In the Midwest region, Nebraska Public Power District hopes to begin construction late this summer on its estimated $380 million Nebraska R-Project from Sutherland to near Thedford, Nebraska, which is designed to supply power generated at private windfarms to the interstate power grid, but the project has faced challenges from some landowners along the route. The R-Project would include a 146-mile line from Valentine to Ewing, connecting the proposed Cherry County Substation to the proposed Holt County Substation, respectively; and the 76-mile line from Sutherland to Thedford, connecting the upgraded Gentleman Terminal to the existing Thedford Substation.

Earlier this year, the Nebraska Public Power District awarded a construction contract to Forbes Brothers Timberline Construction Incorporated (Rapid City, South Dakota). Nebraska's legislature recently passed a bill allowing landowners to challenge in court whether the use of eminent domain for power-line construction for a privately developed wind turbine project is a "public use," according to The Grand Island Independent. Many landowners along the proposed power line route are opposed to the project and have not signed an access agreement with NPPD, according to the newspaper.

For more information, see Industrial Info's project reports on the Valentine-to-Ewing and Sutherland-to-Thedford lines, the Cherry County Substation, the Holt County Substation, and the Gentleman Terminal upgrade.

In the Rocky Mountain region, El Paso Electric Company (NYSE:EE) (El Paso, Texas) aims to boost transmission capacity and access to renewable resources in the southwestern U.S. with its estimated $800 million Southline Transmission Project in Arizona and New Mexico. The multi-phase plan is designed to transmit New Mexico-generated renewable energy across the some of the southernmost areas of both states. The project received a big boost late last year when New Mexico's State Land Commissioner finalized a right-of-way easement, according to New Mexico newspaper The Deming Headlight.

The Southline Transmission Project includes new and upgraded transmission lines, as well as new substations. Newly constructed lines are expected to include a Lordsburg-to-Cochise segment, running 55 miles; a Deming-to-Lordsburg segment, running 53 miles, and a La Mesa-to-Deming segment, running 73 miles, all in New Mexico. For more information, see Industrial Info's project reports on the Lordsburg-to-Cochise, Deming-to-Lordsburg and La Mesa-to-Deming segments.

New Mexico and Arizona are two states in the Rocky Mountain region--which also includes Colorado, Nevada, Utah and Wyoming--that are witnessing a surge in T&D projects. Arizona is set to be the starting point for Arizona Public Service Company's estimated $400 million North Hila-Imperial Valley #2 Transmission Line from Yuma, Arizona, to El Centro, California, which will transmit renewable energy about 85 miles. Arizona Public Service Company is a subsidiary of Pinnacle West Capital Corporation (NYSE:PNW) (Phoenix, Arizona). For more information, see Industrial Info's project report.

For more information on the region's dominance in the T&D sector, see March 14, 2019, article - Rocky Mountains Fertile Land for $1.5 Billion in Transmission, Distribution Projects in Second Quarter.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.