Resilient Electric Grid (REG) expected to be in operation by early 2021
DEVENS, Mass. and CHICAGO, Oct. 31, 2018 (GLOBE NEWSWIRE) -- AMSC, a global energy solutions provider serving
wind and power grid industry leaders, today announced that it has entered into an agreement with ComEd, which delivers electricity
to more than 4 million customers in northern Illinois, to deploy AMSC’s high temperature superconductor technology which is
expected to make the electric grid even more reliable for ComEd customers.
The project is funded in part by the Department of Homeland Security (DHS) Science and Technology Directorate
initiative to secure the nation’s electric grid against extreme weather or other catastrophic events. It is structured as a
cost-sharing arrangement among AMSC, ComEd and DHS. The agreement between AMSC and ComEd, which includes commercial terms, remains
subject to DHS approval. It will mark the first installation of AMSC’s Resilient Electric Grid (REG) system in Chicago, and it is
expected to become a permanent part of Chicago’s power grid.
The REG system uses AMSC's high temperature superconductor technology and, under the terms of the agreement between AMSC and
ComEd, will link existing electric power infrastructure within the City of Chicago. The REG system is expected to strengthen
Chicago’s electric grid and to enhance its load serving capacity, resiliency and reliability.
“This installation of AMSC’s REG system is part of ComEd’s vision to deploy new technology that supports the evolution of a
smarter and more resilient electric grid,” said Terence R. Donnelly, president and chief operating officer, ComEd. "We will
monitor and measure the impact of this project to determine whether to apply the technology elsewhere in Chicago or in other areas
of our service territory.”
“We are excited to put Chicago’s first permanent REG system installation into the ground,” said Daniel P. McGahn, president and
CEO, AMSC. “We believe the REG system can be a critical asset for utilities in helping them deal with an evolving and more complex
grid.”
AMSC's REG system is an innovative approach to the electric grid. REG systems significantly increase the
reliability and load-serving capacity of the electric grid by enabling the use of transmission and distribution assets in a way
that is not feasible with traditional technologies while limiting the need for additional grid infrastructure, which mitigates
environmental impact.
The key component to the REG system is AMSC's breakthrough Amperium® wire that combines with other
sub-system design elements to increase the reliability, redundancy, and resiliency of urban power grids, greatly reducing the
impact of equipment failure due to aging, cyber threats, physical disasters, or weather-related events.
For more information about the agreement between ComEd and AMSC, please refer to AMSC's filing on Form 8-K today.
About ComEd
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC), a Fortune 100 energy company with
approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the
lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information
visit ComEd.com and connect with the company on Facebook, Twitter and YouTube.
About AMSC (Nasdaq: AMSC)
AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through
its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce
the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems
that optimize network reliability, efficiency and performance. AMSC’s solutions are now powering gigawatts of renewable energy
globally and are enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC
is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information,
please visit www.amsc.com.
AMSC, Amperium, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are trademarks or registered trademarks of American
Superconductor Corporation. All other brand names, product names, trademarks, or service marks belong to their respective
holders.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Any statements in this release about the expectation that the REG system
will be operational by early 2021; the expectation that AMSC’s high temperature
superconductor technology will make the electric grid even more reliable for ComEd customers; the expectation
that the REG system will become a permanent part of Chicago’s power grid; the expectation that AMSC’s REG system will
strengthen Chicago’s electric grid and enhance its load serving capacity, resiliency and reliability; ComEd’s vision; performance
and capabilities of the REG system; benefits and other impacts of the REG system on ComEd’s electric grid; AMSC’s belief that
the REG system can be a critical asset for utilities in helping them deal with an evolving and more complex grid; and other
statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements represent management's current expectations and are inherently uncertain. There are a number of important factors that
could materially impact the value of AMSC’s common stock or cause actual results to differ materially from those indicated by such
forward-looking statements. These important factors include, but are not limited to: AMSC cannot predict if and when DHS will
approve the agreement between AMSC and ComEd and the underlying project; AMSC cannot predict if and when ComEd and AMSC
will enter an agreement to apply the technology elsewhere; A significant portion of AMSC’s revenues are derived from a single
customer, Inox, and AMSC cannot predict if and when Inox’s demand dislocation will be resolved, and to the extent resolved, how
successful Inox will be under India’s new central and state auction regime; AMSC has a history of operating losses and negative
operating cash flows, which may continue in the future and require AMSC to secure additional financing in the future; AMSC’s
operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal
quarter; AMSC’s financial condition may have an adverse effect on AMSC’s customer and supplier relationships; AMSC may be required
to issue performance bonds or provide letters of credit, which restricts AMSC’s ability to access any cash used as collateral for
the bonds or letters of credit; AMSC’s contracts with the U.S. government are subject to audit, modification or termination by the
U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains
subject to annual congressional appropriation, which, if not approved, could reduce AMSC’s revenue and lower or eliminate AMSC’s
profit; AMSC’s success is dependent upon attracting and retaining qualified personnel and AMSC’s inability to do so could
significantly damage AMSC’s business and prospects; AMSC relies upon third-party suppliers for the components and sub-assemblies of
many of AMSC’s Wind and Grid products, making AMSC vulnerable to supply shortages and price fluctuations, which could harm AMSC’s
business; Failure to successfully execute the move of AMSC’s former Devens, Massachusetts manufacturing facility or achieve
expected savings following the move could adversely impact AMSC’s financial performance; AMSC may not realize all of the sales
expected from AMSC’s backlog of orders and contracts; AMSC’s success depends upon the commercial use of high temperature
superconductor products, which is currently limited, and a widespread commercial market for AMSC’s products may not develop; Many
of AMSC’s revenue opportunities are dependent upon subcontractors and other business collaborators; Problems with product quality
or product performance may cause AMSC to incur warranty expenses and may damage AMSC’s market reputation and prevent AMSC from
achieving increased sales and market share; AMSC faces risks related to its intellectual property; AMSC faces risks related to its
legal proceedings; and the important factors discussed under the caption "Risk Factors" in Part 1. Item 1A of AMSC’s Form 10-K for
the fiscal year ended March 31, 2018, and AMSC’s other reports filed with the SEC. These important factors, among others, could
cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by
AMSC’s management from time to time. Any such forward-looking statements represent management's estimates as of the date of this
press release. While AMSC may elect to update such forward-looking statements at some point in the future, AMSC disclaims any
obligation to do so, even if subsequent events cause AMSC’s views to change. These forward-looking statements should not be relied
upon as representing AMSC’s views as of any date subsequent to the date of this press release.
ComEd Contact:
ComEd Media Relations
(312) 394-3500
www.comed.com/news
AMSC Contacts:
Investor Relations Contact:
LHA Investor Relations
Sanjay M. Hurry
(212) 838-3777
amscIR@lhai.com
Public Relations Contacts:
RooneyPartners LLC
Bob Cavosi
646-638-9891
rcavosi@rooneyco.com
AMSC
Nicol Golez
Phone: 978-399-8344
Nicol.Golez@amsc.com