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Goldfield Corp. Message Board

  • ajjones22156 ajjones22156 Apr 19, 2013 9:57 AM Flag

    Just a short read

    TWST: What are the big investment trends you are seeing in this electricity infrastructure area?

    Ms. Dilts: I have what I call kind a thematic approach to my infrastructure coverage. I try to find what I believe will be powerful infrastructure investment trends and then orient my coverage around companies that will be significant beneficiaries of these trends.

    I am following two key themes, or markets, right now. The first is electric transmission and distribution infrastructure, which I touched on with contractors. Electric transmission is the movement of electricity across the high-voltage electrical network. We are entering the third year of a strong investment trend in this market. I estimate that the electric transmission market has essentially doubled over the 2010 to 2012 time frame. During that time, it has gone from about $11.2 billion in 2010 to $22 billion in 2012, and we are forecasting continued high teens growth in 2013 and 2014. We are seeing more of that growth coming from Canada in 2013 than we have seen over the past two years.

    The increased spending on transmission that we have seen recently is a function of a few things. First, I believe that the U.S. has underinvested in the grid for decades. Infrastructure needs tend to get attention when there is a catastrophe or an issue, which raises the awareness of the problems. There has been a lot of coverage of power shortages internationally, in India and China, but here in the U.S., we had a couple of blackouts in the early 2000s that raised awareness of grid issues.

    After the problems in the early 2000s, the government started paying more attention to the fact that the grid was aging, overstressed - was very congested in certain areas. The government came out with the Energy Policy Act in 2005, which really incentivized the utilities to invest in transmission infrastructure. We started to see a little bit of a pickup...

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