HOUSTON, June 1, 2021 /PRNewswire/ -- Quanta
Services, Inc. (NYSE: PWR) announced today that LUMA Energy, LLC
(LUMA), a joint venture between Quanta Services (Quanta) and
Canadian Utilities Limited, an ATCO Ltd. Company (ATCO), has
commenced the operations and maintenance of Puerto Rico's electric power transmission and
distribution (T&D) system under the Supplemental Terms
Agreement following nearly a year of preparation to transition
these responsibilities from the Puerto Rico Electric Power
Authority (PREPA) to LUMA.
Duke Austin, Quanta's President
and Chief Executive Officer, commented, "We want to congratulate
the teams at LUMA, Quanta and ATCO, and the Puerto Rico regulatory authorities, who have
worked diligently to ensure the on-time transition of the
operations and maintenance of Puerto
Rico's more than 18,000-mile T&D system to LUMA. In
LUMA, we have created a purpose-built and effective operator for
the Puerto Rico T&D system and the people of Puerto Rico. We remain steadfast in our
commitment to continue to invest our time, expertise and resources
to help drive efficient operations at LUMA, as it works to deliver
a modern, secure, resilient and affordable electric grid, and to
develop a highly trained craft-skilled workforce for the future of
Puerto Rico. We look forward to
working with the communities we serve."
In June 2020, following a
competitive process that lasted for more than a year, Quanta
announced that LUMA was selected by the Puerto Rico Public-Private
Partnership Authority (P3) for a 15-year Operation and Maintenance
Agreement (the O&M Agreement) with PREPA. This O&M
Agreement engages LUMA to operate, maintain and modernize PREPA's
T&D system in Puerto Rico,
with the 15-year period scheduled to commence upon PREPA's exit
from Title III bankruptcy. LUMA will not own the T&D assets and
will not own or operate the power generation assets. Quanta
believes that, in addition to delivering a more reliable and
resilient power grid, LUMA's efforts will deliver long-term social
and economic benefits to the people of Puerto Rico. Quanta and ATCO each own 50% of
LUMA.
About Quanta Services
Quanta Services is a leading
specialized contracting services company, delivering comprehensive
infrastructure solutions for the utility, communications, pipeline
and energy industries. Quanta's comprehensive services include
designing, installing, repairing and maintaining energy and
communications infrastructure. With operations throughout
the United States, Canada, Australia and select other international
markets, Quanta has the manpower, resources and expertise to safely
complete projects that are local, regional, national or
international in scope. For more information, visit
www.quantaservices.com.
Forward Looking Statements
This press release
(and any oral statements regarding the subject matter of this press
release) contains forward-looking statements intended to qualify
for the "safe harbor" from liability established by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to, statements relating to
expectations regarding the future financial and operational
performance of LUMA; the projected impact and benefits of LUMA on
Quanta's operating or financial results, including potential
management and incentive fees and the expected value of the
Supplemental Terms Agreement or the O&M Agreement or Quanta's
investment in LUMA; the future performance, efficiency, safety or
success of the operation, maintenance and transformation project
and Quanta's investment in LUMA, including the expected economic,
workforce and social impact on Puerto
Rico and expectations regarding future performance of the
Puerto Rican electrical grid and service; the future impact of LUMA
or Quanta on workforce development in Puerto Rico; expectations regarding Quanta's
business or financial outlook, plans and strategies; the business
plans or financial condition of PREPA, including its ability to
emerge from bankruptcy; ; as well as statements reflecting
expectations, intentions, assumptions or beliefs about future
events and other statements that do not relate strictly to
historical or current facts. These forward-looking statements
are not guarantees of future performance, involve or rely on a
number of risks, uncertainties, and assumptions that are difficult
to predict or are beyond our control, and reflect management's
beliefs and assumptions based on information available at the time
the statements are made. We caution you that actual outcomes and
results may differ materially from what is expressed, implied, or
forecasted by our forward-looking statements and that any or all of
our forward-looking statements may turn out to be inaccurate or
incorrect. Forward-looking statements can be affected by inaccurate
assumptions and by known or unknown risks and uncertainties
including , among others, market conditions; the effects of
industry, economic or political conditions outside of the control
of Quanta, including the ongoing and potential impact to
financial markets and worldwide economic activity resulting from
the COVID-19 pandemic; successful performance and completion of the
Supplemental Terms Agreement and the O&M Agreement; failure to
realize the anticipated value of the Supplemental Terms Agreement
or the O&M Agreement; delays, reductions in scope or
cancellations related to the project and potential additional
opportunities, including as a result of weather, regulatory or
permitting issues, environmental processes, performance issues,
claimed force majeure events, protests or other political activity,
reductions or eliminations in governmental funding, legal
challenges or customer capital constraints; the impact of the
COVID-19 pandemic on Quanta's and LUMA's operations, personnel and
supply chain; performance shortfalls by LUMA or any party's
inability or failure to comply with the terms of the Supplemental
Terms Agreement, the O&M Agreement, the joint venture agreement
and other agreements associated with the arrangement; the
potential for claims associated with schedule delays, performance
shortfalls or inability or failure to comply with the contractual
terms of the arrangement; adverse weather conditions or significant
weather events, including, among others, hurricanes, tropical
storms and floods; risks associated with operational hazards that
arise due to the nature of LUMA's and Quanta's services and the
conditions in which they operate; unexpected costs or liabilities
that may arise from legal proceedings, indemnity obligations,
pension plans, environmental liabilities or other claims or actions
asserted against LUMA or Quanta, including those not covered by, or
in excess of, third-party insurance; the ability to develop and
attract and the potential shortage of skilled labor; the ability to
retain key personnel and qualified employees for the successful
management of LUMA; the successful negotiation, execution,
performance and completion of anticipated, pending and existing
contracts; the inability or refusal of PREPA to pay for
Quanta's services, including as a result of its ongoing
bankruptcy; the impact of a unionized workforce on operations,
including labor stoppages or interruptions due to strikes or
lockouts; the failure of suppliers, subcontractors or other third
party contractors to perform their obligations, including warranty
obligations, under their subcontracts; adverse changes in economic
conditions and trends in relevant markets; cancellation and
termination provisions present in the O&M Agreement; and
other risks and uncertainties detailed in Quanta's Annual Report on
Form 10-K for the year ended Dec. 31,
2020, Quanta's Quarterly Report on Form 10-Q for the quarter
ended Mar. 31, 2021, and any other
documents that Quanta files with the Securities and Exchange
Commission (SEC). For a discussion of these risks, uncertainties
and assumptions, investors are urged to refer to Quanta's documents
filed with the SEC that are available through the company's website
at www.quantaservices.com or through the SEC's Electronic
Data Gathering and Analysis Retrieval System (EDGAR)
at www.sec.gov. Should one or more of these risks materialize,
or should underlying assumptions prove incorrect, actual results
may vary materially from those expressed or implied in any
forward-looking statements. Investors are cautioned not to place
undue reliance on these forward-looking statements, which are
current only as of this date. Quanta does not undertake and
expressly disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Quanta further expressly disclaims any
written or oral statements made by any third party regarding the
subject matter of this press release.
Investors - Kip Rupp,
CFA, IRC
|
Media – Liz
James
|
Quanta Services,
Inc.
|
Sard Verbinnen &
Co
|
(713)
341-7260
|
(281)
881-5170
|
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SOURCE Quanta Services, Inc.