American Superconductor Corp., a supplier of wind-turbine and electric-grid components, rose the most in more than six years after agreeing to strengthen Chicago’s power system in a project with Exelon Corp.
Exelon’s Commonwealth Edison unit and AMSC will build a superconducting cable system spanning more than 3 miles to bolster Chicago’s grid and provide added reliability against extreme weather or terror attacks, the companies said today in a joint statement. The project is part of a U.S. Department of Homeland Security initiative.
Devens, Massachusetts-based AMSC gained 28 percent to $2.06 at the close in New York, the biggest increase since May 2008. Even with the rebound, the shares are down 25 percent for the past 12 months.
The grid design in many cities makes restoring power after a catastrophic event time-consuming and costly, according to the statement. The department’s Resilient Electric Grid initiative aims to strengthen the power system when portions of it fail. The project would be the first commercial application of the technology in the U.S.
AMSC will reap $60 million in revenue for its part in the project, according to a filing today with the U.S. Securities and Exchange Commission.