A consortium led by Calgary-based ATCO Ltd. has won a contract to modernize and operate Puerto Rico’s electric transmission and distribution system.
Calgary-based ATCO and Houston-based Quanta Services announced Monday after markets closed they had won the right to update and operate the Puerto Rico Electric Power Authority, which includes over 30,000 kilometres of power lines that provide electricity to 1.5 million Puerto Ricans.
The contract is worth US$60 million in the first year, which is a transition year as the consortium takes over, then increases in value for the rest of the 15-year contract up to a maximum of US$105 million per year.
Hurricane Maria knocked out power across all of the U.S. island territory in 2017 and it took 11 months for crews to completely restore power.
Now, following an 18-month bidding process, Puerto Rico is looking to update its transmission and distribution system.
As part of their bid, ATCO and Quanta Services formed a joint-venture called Luma Energy LLC to follow through on commitments to Puerto Rico over the next 15 years. Luma also announced it engaged Morrisville, N.C.-based disaster management company Innovative Energy Management for the project.
ATCO chair and CEO Nancy Southern called the contract to update and operate Puerto Rico’s electric transmission and distribution system a “watershed win” for Canadian Utilities, which is owned by ATCO.
She said in a release it “further establishes Canadian Utilities on the global stage as a leader in energy infrastructure.”
ATCO and Canadian Utilities own and operate part of Alberta’s electric transmission grid as well as multiple power plants in Alberta.
Canadian Utilities president and CEO Siegfried Kiefer said in a release that the company and Quanta beat out some of the largest utility companies in North America for the contract.
“This opportunity fits with Canadian Utilities’ growth strategy in the U.S. and Latin America,” Kiefer said.