Strategic partnership to advance transmission and power infrastructure

American Electric Power (AEP) and Quanta Services have announced a strategic partnership to advance transmission and power infrastructure in the United States. The long-term agreements, including a Cooperation and Commitment Agreement for transmission projects and a Development Services Agreement for large transformer and breaker manufacturing, are designed to support the execution of AEP's ambitious $72 billion capital plan. This partnership leverages Quanta Services' expertise in engineering, procurement, and construction (EPC) services to bolster AEP's capabilities in upgrading and expanding its transmission network and manufacturing key components. The involvement of AEP Ohio, a subsidiary of AEP, further underscores the regional focus of this infrastructure development. This deal signifies a major commitment to modernizing the U.S. power grid. By partnering with Quanta Services, AEP aims to efficiently and effectively deploy its significant capital investment, addressing critical infrastructure needs and enhancing grid reliability. The focus on domestic manufacturing of large transformers and breakers also highlights a strategic move towards strengthening the supply chain and reducing reliance on foreign sources. The partnership is likely to have a positive impact on the transmission sector, potentially setting a precedent for similar collaborations between utilities and EPC firms.