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Jan. 21 (Bloomberg) -- The U.S. faces longer power outages resulting from storms this year after utilities cut spending on maintenance by as much as 50 percent, according to Quanta Services Inc., the world’s largest builder of transmission lines. “Because they haven’t been doing maintenance for a few years, we will see longer outages and we will see more frequent outages as storm season approaches,” Chief Executive Officer John R. Colson said yesterday in an interview in Bloomberg’s Houston office. “It’s a frequent, very frequent occurrence that cities are affected by storms that shouldn’t really affect their distribution systems, and they are devastated and they are out of electricity for days and days.”
Utilities cut their maintenance budgets over the last two or three years because they are uncertain whether they will recover the costs through a rate increase, according to Quanta’s Colson. Most of the regulators who decide on higher charges are appointed by governors who may face re-election this year and don’t want to see big rate increases before the vote, he said.
“When spring storms come, with the wind and tornados and lighting, it will show on the systems,” he said. (...Read More)
