Gary Holdsworth

The Long Case for ABB Ltd.

Goo point on the transmission build out for renewables. US utilities only spent about $2B per year on transmission early in this decade, they are now at $6B per year, going to $12B per year by 2010 and probably $20B soon thereafter if all of the wind/solar/geothermal projects that are in interconnection queues in CA, the Midwest, and TX all come to fruition. That means, lots of transformers, static VAR compensators, transmission towers, and power cable. Interested investors might also want to look at Quanta (PWR) as a premiere player in the installation of all of this T&D equipment.