AMSC®, a global energy solutions provider serving wind and power
grid industry leaders, today announced that Commonwealth Edison
(ComEd) is conducting the engineering assessment for a proposed
second project of AMSC’s Resilient Electric Grid (REG) system for
Chicago’s central business district. The Federal Energy Regulatory
Commission (FERC), which allows utilities to recover their
investments in transmission systems, recently granted ComEd’s
request to recover its portion of the cost to construct, operate
and maintain both projects through its transmission rates.
ComEd’s second project, if agreed to and undertaken, would
follow timewise its first project at ComEd’s substation and would
utilize AMSC’s REG system to interconnect multiple existing
substations in Chicago’s central business district. The second
project is expected to be larger in scope than the first and
provide greater reliability, resiliency and load-serving
capabilities during outages or other grid disruptions. The larger
scope of the second project is intended to help create an even more
resilient and reliable electric grid for Chicago and ComEd, which
delivers electricity to more than 4 million customers in northern
Illinois. ComEd expects the REG project will be less disruptive to
the downtown area and will not require the significant
infrastructure expansion that a new or expanded transmission
substation would necessitate.
“We are pleased to obtain FERC’s regulatory approval for a first
and second deployment of AMSC’s REG solution,” said Terence R.
Donnelly, president and chief operating officer, ComEd. “We have
begun the preliminary engineering work on the second deployment of
REG. Since the second project is contingent upon the successful
installation and operation of the first, we will carefully monitor
and measure the impact of the first project before applying the
technology to the larger REG project planned for the central
business district.”
For the first REG project, AMSC and ComEd have entered into a
commercial contract as part of the ongoing U.S. Department of
Homeland Security (DHS) Science and Technology Directorate’s
initiative to secure the nation’s electric grid against extreme
weather and other catastrophic events. When complete, the project
will be the first permanent installation of high-temperature
superconductor technology in the U.S. electric grid.
Engineering work for the first REG project in Chicago began this
year and AMSC is on schedule to deliver the REG project hardware in
2020. The REG system is expected to be operational in 2021.
AMSC’s REG system is a self-healing solution that provides
resiliency in the event that portions of the grid are lost for any
reason. REG systems enable the use of transmission and distribution
assets in a way that is not feasible with traditional technologies
while limiting the need for additional grid infrastructure, which
mitigates environmental impact.
The key component to the REG system is AMSC's breakthrough
Amperium® wire that combines with other sub-system design elements
to increase the reliability, redundancy, and resiliency of urban
power grids, greatly reducing the impact of equipment failure due
to aging, cyber threats, physical disasters, or weather-related
events.
About ComEdCommonwealth Edison Company (ComEd)
is a unit of Chicago-based Exelon Corporation (Nasdaq: EXC), a
Fortune 100 energy company with approximately 10 million
electricity and natural gas customers – the largest number of
customers in the U.S. ComEd powers the lives of more than 4 million
customers across northern Illinois, or 70 percent of the state’s
population. For more information visit ComEd.com and connect
with the company on Facebook, Twitter
and YouTube.
About AMSC (Nasdaq: AMSC) AMSC generates the
ideas, technologies and solutions that meet the world’s demand for
smarter, cleaner … better energy™. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy.
Through its Gridtec™ Solutions, AMSC provides the engineering
planning services and advanced grid systems that optimize network
reliability, efficiency and performance. AMSC’s solutions are now
powering gigawatts of renewable energy globally and are enhancing
the performance and reliability of power networks in more than a
dozen countries. Founded in 1987, AMSC is headquartered near
Boston, Massachusetts with operations in Asia, Australia, Europe
and North America. For more information, please visit
www.amsc.com.
©2019 AMSC, Amperium, Windtec, Gridtec, and Smarter, Cleaner …
Better Energy are trademarks or registered trademarks of American
Superconductor Corporation. All other brand names, product names,
trademarks, or service marks belong to their respective
holders.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Any
statements in this release about the expected timeline for ComEd’s
first REG system; the scope and potential benefits of ComEd’s
proposed second REG project in the Chicago Central Business
District; performance and capabilities of the REG system, including
AMSC’s Amperium wire component; benefits and other impacts of the
REG system on ComEd’s electric grid; and other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions, constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements represent
management's current expectations and are inherently uncertain.
There are a number of important factors that could materially
impact the value of AMSC’s common stock or cause actual results to
differ materially from those indicated by such forward-looking
statements. These important factors include, but are not limited
to: AMSC cannot predict if and when ComEd will begin the proposed
second REG project in the Chicago Central Business District; A
significant portion of AMSC’s revenues are derived from a single
customer, Inox, and AMSC cannot predict if and how successful Inox
will be in executing on Solar Energy Corporate of India ("SECI")
orders under India’s new central and state auction regime; and any
related failure by Inox to succeed under this regime, or any delay
in Inox’s ability to deliver its wind turbines, could result in
fewer electric control systems shipments to Inox; AMSC has a
history of operating losses and negative operating cash flows,
which may continue in the future and require AMSC to secure
additional financing in the future; AMSC’s operating results may
fluctuate significantly from quarter to quarter and may fall below
expectations in any particular fiscal quarter; AMSC’s financial
condition may have an adverse effect on AMSC’s customer and
supplier relationships; AMSC may be required to issue performance
bonds or provide letters of credit, which restricts AMSC’s ability
to access any cash used as collateral for the bonds or letters of
credit; AMSC’s contracts with the U.S. government are subject to
audit, modification or termination by the U.S. government and
include certain other provisions in favor of the government, and
additional funding of such contracts may not be approved by the
U.S. Congress, which, if not approved, could reduce AMSC’s revenue
and lower or eliminate AMSC’s profit; AMSC’s success is dependent
upon attracting and retaining qualified personnel and AMSC’s
inability to do so could significantly damage AMSC’s business and
prospects; AMSC relies upon third-party suppliers for the
components and sub-assemblies of many of AMSC’s Wind and Grid
products, making AMSC vulnerable to supply shortages and price
fluctuations, which could harm AMSC’s business; AMSC may experience
difficulties re-establishing its HTS wire production capability in
its Ayer, Massachusetts facility; AMSC may not realize all of the
sales expected from AMSC’s backlog of orders and contracts; Many of
AMSC’s revenue opportunities are dependent upon subcontractors and
other business collaborators; If AMSC fails to implement its
business strategy successfully, AMSC’s financial performance could
be harmed; Problems with product quality or product performance may
cause AMSC to incur warranty expenses and may damage AMSC’s market
reputation and prevent AMSC from achieving increased sales and
market share; AMSC has had limited success marketing and selling
its superconductor products and system-level solutions, and AMSC’s
failure to more broadly market and sell its products and solutions
could lower its revenue and cash flow; AMSC’s success depends upon
the commercial adoption of the REG system, which is currently
limited, and a widespread commercial market for AMSC’s products may
not develop; AMSC’s products face intense competition, which could
limit its ability to acquire or retain customers; AMSC’s
international operations are subject to risks that it does not face
in the United States, which could have an adverse effect on AMSC’s
operating results; AMSC faces risks related to its intellectual
property and technology; AMSC faces risks related to its legal
proceedings; and the important factors discussed under the caption
"Risk Factors" in Part 1. Item 1A of AMSC’s Form 10-K for the
fiscal year ended March 31, 2019, and AMSC’s other reports filed
with the SEC. These important factors, among others, could cause
actual results to differ materially from those indicated by
forward-looking statements made herein and presented elsewhere by
AMSC’s management from time to time. Any such forward-looking
statements represent management's estimates as of the date of this
press release. While AMSC may elect to update such forward-looking
statements at some point in the future, AMSC disclaims any
obligation to do so, even if subsequent events cause AMSC’s views
to change. These forward-looking statements should not be relied
upon as representing AMSC’s views as of any date subsequent to the
date of this press release.
ComEd Contact:ComEd Media Relations(312)
394-3500www.comed.com/news
AMSC Contacts:Investor Relations Contact:LHA
Investor RelationsSanjay M. Hurry (212) 838-3777amscIR@lhai.com
Public Relations Contact:RooneyPartners LLC Bob
Cavosi646-638-9891rcavosi@rooneyco.com
AMSC Communications Manager:Nicol GolezPhone:
978-399-8344Nicol.Golez@amsc.com
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