American Electric Power to Execute $72 Billion Capital Plan with Long-Term Agreements with Quanta Services

American Electric Power (AEP) has announced long-term strategic agreements with Quanta Services to help AEP execute its $72 billion capital plan including delivery of high-voltage transmission, while enhancing supply chain resilience and expanding development capabilities to serve customers, including the surging data center market.

The collaboration includes a Cooperation and Commitment Agreement for transmission projects, and a Development Services Agreement for transformer and breaker manufacturing. The efforts will enable AEP and Quanta to deliver greater efficiency, constructability and certainty in meeting the energy needs of customers today and in the future.

Under the Cooperation and Commitment Agreement, AEP and Quanta will collaborate on the design, engineering, procurement and construction of 765 kV and other high-voltage transmission facilities. The partnership agreement will combine AEP’s operational and development expertise with Quanta’s track record of large-scale project execution, improving cost predictability, enhancing delivery certainty and providing a proven operational structure.

AEP and Quanta bring the benefits of 765 kV transmission to AEP's traditional operating footprint as well as surrounding markets.

AEP and Quanta executed a Development Services Agreement to expand domestic manufacturing capacity for extra-high-voltage transformers and circuit breakers. The initiative not only represent an investment in power equipment manufacturing in the U.S. but will also strengthen the domestic supply chain and ensure reliable access to critical grid components.

“These agreements represent a new level of collaboration between AEP and Quanta that positions the companies to deliver solutions to customers to meet their electric needs with greater speed, greater schedule certainty and at improved costs,” said Bill Fehrman, AEP chairman, president and chief executive officer. “By aligning with Quanta early on supply chain, constructability and operations we are creating a new model that strengthens execution, reduces risk and provides certainty around the development of projects for our customers and stakeholders.”

The partnership will support AEP’s regulated and competitive transmission companies, including Transource Energy, while backing both AEP and Quanta to deliver integrated solutions for the developing grid and hyperscale market.