ComEd to Partner with AMSC on Superconductor-based Resilient Electric Grid System

  ComEd to Partner with AMSC on Superconductor-based Resilient Electric Grid
  System

  Homeland Security Project Seeks to Increase the Resiliency and Security of
                           Chicago’s Electric Grid

Business Wire

DEVENS, Mass. & CHICAGO -- July 16, 2014

AMSC (NASDAQ: AMSC), a global energy solutions provider serving wind and power
grid industry leaders, today announced that ComEd, a unit of Chicago-based
Exelon Corporation (NYSE: EXC) and one of the nation’s largest electric
utilities, has agreed to develop a deployment plan for AMSC’s high temperature
superconductor technology to build a superconducting cable system that will
strengthen Chicago’s electric grid. The Resilient Electric Grid (REG) effort
is part of the U.S. Department of Homeland Security (DHS) Science and
Technology Directorate’s work to secure the nation’s electric power grids and
improve resiliency against extreme weather, acts of terrorism, or other
catastrophic events.

“Modernizing our region’s electric grid is part of ComEd’s vision to
strengthen power reliability and to connect our customers and this region to
the 21^st century digital economy,” said Anne R. Pramaggiore, President and
CEO, ComEd. “We view this project as a natural extension of the infrastructure
improvements and technological upgrades that have been under way for the past
two years as we develop and deploy the smart grid. Linking our critical urban
infrastructure to this superconductor system would provide added reliability,
resiliency and security to Chicago’s Central Business District, an essential
economic engine for the state and region.”

The current design of the grid infrastructure in many U.S. cities makes
restoration of power after a catastrophic event time-consuming, costly, and
unpredictable. Led by the DHS Science and Technology Directorate, the
Resilient Electric Grid is a self-healing solution that provides resiliency in
the event that portions of the grid are lost for any reason. The ComEd
installation would be the first commercial application of this advanced
technology in the United States.

“We greatly value our partnership with ComEd. As one of the nation’s largest
utilities, this project establishes ComEd as the lead utility in our program
with DHS and speaks to the unique benefits of AMSC’s technology in addressing
critical challenges facing the power grid,” said AMSC President and CEO Daniel
P. McGahn. “As provided in the DHS contract, AMSC will initiate a similar
deployment plan with at least two other U.S. utilities.”

McGahn continued, “Utilities around the world are investing tens of billions
of dollars on smart grid technology designed in part to create a more
redundant and resilient grid. We believe that the Resilient Electric Grid
system, which is enabled by AMSC’s unique high temperature superconductor
technology, has the potential to play a significant role in protecting the
infrastructure assets so vital to our electrical systems. Together with the
leadership from DHS and ComEd, we believe AMSC is now in a position to offer
this system solution to cities in America and around the world.”

“In addition to providing reliable power and increased security, this
installation of more than three miles of superconductor cable would create the
most extensive superconductor project of this nature in the world,” said
Terence R. Donnelly, ComEd’s Chief Operating Officer. “ComEd’s transformation
of our business relies heavily on technology and innovation. In this era of
increasingly intense weather events and other potential catastrophic
occurrences, this project will not only support the City of Chicago but can
serve as a model to enable widespread implementation of the superconductor
technology nationally and globally.”

ComEd provides service to approximately 3.8 million customers across Northern
Illinois, or 70 percent of the state's population including the City of
Chicago.

For additional information on this arrangement, please see the Current Report
on Form 8-K that AMSC filed with the Securities and Exchange Commission (SEC)
today.

About AMSC’s REG system

In a typical urban infrastructure, power is produced at plants that are
located outside of the city limits. Power from those plants travels through
high voltage transmission lines until it reaches a substation, where it is
“stepped down” to distribution voltages before being delivered to homes and
businesses. Each substation supplies power to an entire section of a city and,
in many U.S. cities, the substations are not connected to each other and
therefore cannot back up one another. Furthermore, each substation can handle
only a limited amount of capacity. Serving additional load requires either
substation expansions or the construction of costly new substations. The
Resilient Electric Grid system offers a solution. The system provides the dual
benefit of increasing grid reliability while simultaneously increasing grid
capacity by accessing existing but previously underutilized substation assets.
The key component to the REG system is AMSC’s breakthrough HTS cable system
that combines with other system design elements to increase the reliability,
redundancy, and resiliency of urban power grids, greatly reducing the impact
of equipment failure due to aging or cyber-, physical-, or weather-related
disasters.

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. The
Company’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.

About ComEd

Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon
Corporation (NYSE: EXC), the nation’s leading competitive energy provider,
with approximately 6.6 million customers. ComEd provides service to
approximately 3.8 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.

AMSC, 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.

AMSC 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 future expectations, plans and
prospects for AMSC, including, without limitation, statements regarding our
beliefs regarding the expected benefits of the REG system; our belief that
AMSC is in a position to offer the REG system to cities in America and around
the world; our expectation that the REG system would create the most extensive
superconductor project of this nature in the world; 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. Actual results may differ materially from what management currently
expects because of many risks and uncertainties, including the failure to
achieve the expected benefits of the REG system; the failure to successfully
complete the REG project; the risk that AMSC is not or will not be in a
position to offer the REG solution to cities in America and around the world;
the risk that other superconductor projects are or will be more extensive than
the REG project; and the risk that the funding provided by DHS for the project
will be less than currently anticipated or will not cover the portion of
AMSC’s costs that it currently anticipates. These and other important factors
discussed in the “Risk Factors” section of AMSC’s most recent quarterly or
annual report filed with the SEC, among others, could cause actual results to
differ materially from those indicated by forward-looking statements made
herein and presented elsewhere by management from time to time. In addition,
any forward-looking statements included in this press release represent AMSC’s
expectations as of the date of this press release. While AMSC anticipates that
subsequent events and developments may cause its views to change, it
specifically disclaims any obligation to update these forward-looking
statements. 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.

Contact:

ComEd Media Relations
(312) 394-3500
www.comed.com/news
or
AMSC Investor and Media Relations
(978) 842-3247
Kerry.farrell @ amsc.com
 
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