Energy Capital Partners forms Power Line Services group

Short Hills, N.J., March 18, 2010 — Energy Capital Partners formed a new portfolio company, Power Line Services, Inc., to participate in the U.S. electric transmission construction and maintenance business.

Power Line’s current activities include the construction of new electric transmission infrastructure and upgrades to existing transmission infrastructure primarily the Southwest and Gulf Regions of the U.S.

The capital investment needs of the nation’s electric transmission system are expected to accelerate meaningfully over the next 10-15 years to both stabilize a historically undercapitalized grid and accommodate new renewable generation resources.

In the face of this building challenge, the domestic transmission construction industry is highly fragmented and comprised of many small, undercapitalized, regional companies.

Energy Capital and Power Line are addressing the need for a well-capitalized entity with the critical mass to take on large grid projects by aggregating a select and complementary group of highly regarded regional and specialized transmission construction firms.

On September 8, 2009 Power Line completed its first investment with the acquisition of Sun Electric Services, Inc., a privately held business primarily engaged in the construction of electric transmission infrastructure in the South Central and Southwestern U.S.

Headquartered in Odessa, Texas, Sun Electric has been in business since 1982, and performs electrical transmission construction and maintenance services for major utilities and wind developers throughout the south central U.S., as well as oil and gas companies throughout the Permian Basin.

A second strategic acquisition was completed on December 31, 2009, when Power Line purchased Total Electrical Service & Supply Co. of Midland, Texas.

TESSCO is a provider of electrical construction and maintenance services to the electric utility and oil and natural gas markets. With offices in west Texas, southeastern New Mexico and Louisiana, TESSCO has provided electrical construction and maintenance services to over 650 energy customers and has completed over 700 electrical infrastructure projects in 18 states over the past 3 years.

On March 10, 2010, Power Line completed its acquisition of Air2, LLC (“Air2”) of Timonium, Maryland, a leading provider and innovator of helicopter-assisted construction, maintenance and inspection services to the electric utility industry. With a specialized team of line workers and a fleet of MD500 aircraft, Air2 blends the benefits of helicopter access to power line systems with more traditional line work methods.

This group complements the capabilities of Sun Electric and TESSCO and is very well positioned to help meet the country’s demands for increased transmission capacity in an environmentally responsible way.

Power Line Services is a provider of electrical infrastructure construction, maintenance and inspection services to the electric power and oil and natural gas production industries. With about 850 employees and its fleet of over 1,200 pieces of specialized utility construction equipment, Power Line Services completes construction, maintenance and inspection services of major assets for many of the nation’s largest utilities, regional cooperatives, renewable energy developers, commercial and industrial customers and major oil and gas companies.

Energy Capital Partners is a private equity firm focused on investing in the power generation, midstream gas, renewable energy and electric transmission sectors of North America’s energy infrastructure.

 

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