Thanks D. I'm rolling out of tech and adding to some of the energy plays. This one should see some action as substations start popping.
askresearch.com
American Superconductor and GE Industrial Systems Receive Follow-on D-SMES Order from Entergy
5/7/2001 9:01:00 AM
WESTBOROUGH, Mass., May 7, 2001 (BUSINESS WIRE) -- American Superconductor Corporation (AMSC) and GE Industrial Systems, a business of the General Electric Company (GE) , today announced a follow-on order from Entergy Corporation for two additional distributed superconducting magnetic energy storage (D-SMES) units to assure power reliability in the Houston, Texas area in the summer of 2002. Entergy is in the process of installing two D-SMES systems to be operational June 1st near Houston to assure power reliability in the summer of 2001.
Entergy ranks among the largest U.S. utility companies and delivers electricity to more than 2.5 million customers in portions of Arkansas, Louisiana, Mississippi and Texas. Entergy operates a system composed of more than 15,500 miles of high voltage transmission lines and 1,450 transmission substations. Entergy's Transmission Business provides top-quartile cost performance and is recognized by the marketplace for delivery reliability (http://www.entergy.com).
"D-SMES is the clear choice to assure power reliability for our customers," said Doug Mader, Director, Engineering, Management and Capital Construction, Entergy Services, Inc. "We are continuing to work with American Superconductor and GE to determine those areas in our multi-state grid where D-SMES can help us keep up with the increasing demand for more power with higher reliability in the most cost-effective way."
American Superconductor Chief Executive Officer Greg Yurek added, "Tremendous attention is now being focused on the need to upgrade the nation's transmission grid. Entergy is a leader in making the necessary investments in new power grid technologies to address current grid constraints and to meet future customer demands for more power with higher reliability. American Superconductor and GE are continuing to work jointly with Entergy to identify additional areas where D-SMES can provide the most effective, lowest cost and quickest means to increase reliability and power bandwidth."
D-SMES units are installed in substations within transmission and distribution power grids to solve voltage-related problems and to increase the power transfer capability, or power bandwidth, of existing grids. The product was first installed in a grid in July 2000 (see amsuper.com for a performance report). D-SMES will be the subject of two separate case studies, including the Entergy applications, at an industry short course on "Power Electronic Solutions to Transmission Grid Problems," to be held at the University of Wisconsin May 9-11, 2001 (http://epdweb.engr.wisc.edu/courses/index.html ).
AMSC and GE received their first order for two D-SMES units from Entergy in September 2000, and AMSC recognized revenue for those two units that month. GE Industrial Systems purchased two additional units from AMSC in December 2000, which AMSC recognized as revenue in December. The latter two units will be delivered by GE Industrial Systems to Entergy for the summer of 2002 installation.
To learn more about the AMSC/GE co-branded D-SMES power reliability solution, see geindustrial.com cap_reactcompen.shtml or amsuper.com.
Technical Background
Superconducting magnetic energy storage (SMES) is American Superconductor's patented means of storing large quantities of electricity in a superconducting electromagnetic coil until needed as an electric power supplement. Combined with proprietary power electronic devices known as inverters, the SMES storage unit becomes an active device for instantaneously solving power reliability and quality problems at the transmission grid level or at individual industrial or data center sites.
Severe weather, traffic accidents and unforeseen equipment failures can lead to momentary sags in the voltage on power lines. In the United States, more than 80 percent of all electric power disturbances are voltage sags that last less than one second. According to industry data, these momentary voltage sags cost manufacturers and digital power users tens of billions of dollars annually in damaged equipment and lost productivity. SMES systems have been in use for several years at industrial sites in the U.S., South Africa and Europe to provide premium-quality power for individual customers that are vulnerable to momentary drops in voltage in the power delivery network.
SMES components are housed in a semi-tractor trailer and attached to transformers at utility substations at strategic locations within a power grid (D-SMES configuration) or installed as an interface between a utility power supply and an industrial or commercial power user to improve power quality (PQ-SMES configuration). When a voltage drop is detected by the unit's power electronics, SMES instantaneously injects precise amounts of both real and reactive power into the system it is protecting, thereby keeping voltage levels stable. SMES provides a low maintenance, cost effective and flexible solution for utilities, Internet data centers and process intensive industrial users to dramatically improve transmission level reliability and facility power quality.
American Superconductor
American Superconductor Corporation, headquartered in Westborough, Mass., was founded in 1987 and is a world leader in developing and manufacturing products utilizing superconducting materials and power electronic devices for the power infrastructure. The company's products can dramatically increase the bandwidth and reliability of power delivery networks, significantly reduce the manufacturing costs of electrical equipment such as motors and generators, lower electrical operating costs and conserve resources that are used to produce electric power. See amsuper.com.
GE Industrial Systems
GE Industrial Systems is a global leader in manufacturing products used to distribute, protect and control electrical power and equipment, and supplying product and service solutions for commercial, industrial, residential and utility applications. GE Industrial Systems is one of GE's major businesses. GE is the world's largest diversified technology, manufacturing and services company with a commitment to achieving worldwide leadership. For further information, visit the company at geindustrial.com.
Certain statements in this release, including 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. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include the uncertainties that: the company will be able to obtain the anticipated funding from corporate and government contracts; the company will be able to successfully develop and manufacture commercial products; a robust market will develop for the company's products; and the company will secure anticipated orders. Additionally such factors include: the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; the competition encountered by the company, including several large Japanese companies; the amount and timing of the company's future cash requirements and the availability of satisfactory financing sources. Reference is made to these and other factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" section of the company's periodic reports filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's estimates as of May 7, 2001. While the Company anticipates that subsequent events and developments may cause the Company's estimates to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to May 7, 2001.
CONTACT: AMSC Contact:
John Howe, 508-621-4307
jhowe@amsuper.com
OR
GE Contact:
Mary Lou Dlugolenski, 800-747-7310
MaryLou.Dlugolenski@indsys.ge.com
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