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Transmission Market:
Sun
Electric provides critical electrical transmission and distribution
services to the U.S. domestic energy market; traditional crude oil
producers and ‘green energy’ producers involved in developing wind
farms. The Company also provides outsourced construction and
maintenance services to owners of high voltage transmission
infrastructure used to transport electricity from its generation
source to the end-users.
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There is strong
public and political support for developing renewable/green energy
sources to lessen the nation’s dependence on fossil fuel.
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The Energy Act of
2005 establishes guidelines and incentives for renewable energy
projects.
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There has been
chronic underinvestment in the North American electric power grid
for decades; a trend that is reversing as utilities and transmission
companies begin to invest to replacing aging infrastructure and
expand capacity to ensure reliability.
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Response to major
black outs in California and Northeast
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Record peak demand
load on transmission infrastructure
- Federal
government clarifies requirements and provides economic incentives.
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Electric utilities
are increasingly outsourcing construction and maintenance to
qualified third party firms due to:
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Utilities lack a
sufficient qualified and available workforce to handle the amount of
work required to be performed.
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Utilities are
experiencing the effects of a rapidly aging unionized field work
force and have made strategic decisions not to replace them with
internal hires.
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Over fifty percent
of utility work force scheduled to retire by 2010.
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U.S. dependence on
foreign oil imports in the face of strong global demand, unstable
supply due to regional conflicts and natural disasters has driven
the price of oil higher and lead to increased production in the U.S.
- Sun
Electric’s home state, Texas, has one of the five fastest growing
populations in the United States. The U.S. Census bureau forecasts
the population of Texas will grow by 12.5 million people or 60% from
2000 to 2030, which in turn creates further demand for power
infrastructure.
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