With Initial Acquisitions Completed, Energy Capital Partners Announces Formation of Power Line Services, Inc.

SHORT HILLS, N.J. and MIDLAND, Texas, March 18 /PRNewswire/ -- Energy Capital Partners ("ECP") today announced it has formed a new portfolio company, Power Line Services, Inc. ("Power Line"), to participate in the U.S. electric transmission construction and maintenance business.  Power Line's current activities include the construction of new electric transmission infrastructure and upgrades to existing transmission infrastructure primarily the Southwest and Gulf Regions of the United States.

The capital investment needs of the nation's electric transmission system are expected to accelerate meaningfully over the next 10-15 years to both stabilize a historically undercapitalized grid and accommodate new renewable generation resources.  Today, in the face of this building challenge, the domestic transmission construction industry is highly fragmented and comprised of many small, undercapitalized, regional companies.  Energy Capital and Power Line are addressing the need for a well capitalized entity with the critical mass to take on large grid projects by aggregating a select and complementary group of highly regarded regional and specialized transmission construction firms.

"We believe Power Line Services has a window over the next several years to position itself to capitalize on the significant new electric transmission construction activity we expect to occur in the southwestern United States and other areas," said Scott Helm, a partner of Energy Capital Partners.  "We expect Power Line to grow via an acquisition driven roll-up strategy and successfully winning a fair-share of new construction activity," he added.

On September 8, 2009 Power Line completed its first investment with the acquisition of Sun Electric Services, Inc., a privately held business primarily engaged in the construction of electric transmission infrastructure in the South Central and Southwestern U.S.  Headquartered in Odessa, Texas, Sun Electric has been in business since 1982, and performs electrical transmission construction and maintenance services for major utilities and wind developers throughout the south central United States, as well as oil and gas companies throughout the Permian Basin.

A second strategic acquisition was completed on December 31, 2009, when Power Line purchased Total Electrical Service & Supply Co. ("TESSCO") of Midland, Texas.  TESSCO is a leading provider of electrical construction and maintenance services to the electric utility and oil and natural gas markets.  With offices in west Texas, southeastern New Mexico and Louisiana, TESSCO has provided electrical construction and maintenance services to over 650 energy customers and has completed over 700 electrical infrastructure projects in 18 states over the past 3 years.

On March 10, 2010, Power Line completed its acquisition of Air2, LLC ("Air2") of Timonium, Maryland, a leading provider and innovator of helicopter-assisted construction, maintenance and inspection services to the electric utility industry.  With a specialized team of line workers and a fleet of MD500 aircraft, Air2 blends the benefits of helicopter access to power line systems with more traditional line work methods.  This group complements the capabilities of Sun Electric and TESSCO and is very well positioned to help meet the country's demands for increased transmission capacity in an environmentally responsible way.

Along with the acquisitions, Energy Capital also has assembled an experienced and highly skilled senior management to lead Power Line.  Bryan Hoffman, previously co-owner and Vice President of Operations of Sun Electric, will serve as Power Line Services' President & CEO.  He has nearly 20 years of experience in the electrical construction industry.  Brad Romanchuk will serve as Power Line's Chief Financial Officer.  He has worked in the electric transmission construction industry since 2001, and has served as the CFO of Sun Electric since 2008.  Tom McShane will continue in his role as CEO of Air2, and will also assume responsibility for the national marketing efforts at Power Line Services.

Bryan Hoffman, President & CEO of Power Line, said, "The combining of Sun Electric, TESSCO and Air2 is a great first step in our mission to build a premier transmission construction and services business.  We are excited about expanding the relationships with our existing clients and about providing critical electric transmission infrastructure service to this underserved segment of the U.S. power industry.  These initial transactions highlight the powerful combination of Power Line's sector experience with Energy Capital Partners' strong capital position and energy infrastructure expertise."

About Power Line Services

Power Line Services is a leading provider of electrical infrastructure construction, maintenance and inspection services to the electric power and oil and natural gas production industries.  With approximately 850 employees and its fleet of over 1,200 pieces of specialized utility construction equipment, Power Line Services completes construction, maintenance and inspection services of major assets for many of the nation's largest utilities, regional cooperatives, renewable energy developers, commercial and industrial customers and major oil and gas companies.  For more information, please visit their website at www.powerlinesinc.com.

About Energy Capital Partners

Energy Capital Partners is a private equity firm focused on investing in the power generation, midstream gas, renewable energy and electric transmission sectors of North America's energy infrastructure.  The firm's management has substantial experience in leading successful energy companies and energy investments.  ECP has offices in Short Hills, NJ and San Diego, CA.  For more information, please visit their website at www.ecpartners.com.

SOURCE Energy Capital Partners