Think of the electric grid like the nation's highway system. Power plants are the factories. Big high-voltage lines are the interstates and local lines are neighborhood streets.

When traffic gets jammed or a bridge goes out, the whole system slows.

The most cost-effective way to harden the grid is first to maximize the use of our existing roads, then address the weak spots, and only after that, build new highways.

This matters because for the first time in more than a decade, U.S. power consumption is rising again. According to the Energy Information Administration, demand for electricity since 2020 has been increasing by 1.7% a year on average.

That’s close to the 2% yearly average rise we saw in 1990-2005, when the Internet came about and the world went digital – and it’s a big jump from the 0.1% yearly rise we saw between 2005 and 2020.

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The culprit is the rise of AI, which consumes huge amounts of data and power. That’s a boon for power producers, yes, but the companies building, upgrading, and fixing the power grid are raking in cash too.

The quickest win is a smarter use of today's wires. Utilities can add small sensors to lines and substations that read temperature and weather in real time. On cool or windy days, the same wire can safely carry more electricity. Simple software can also act like a navigation app for power, routing electricity around trouble spots and easing congestion. These upgrades are fast, usually measured in months, and do not require new land.

Hardening also means protecting the places where power is switched and controlled. Substations are the heart of local reliability. Basic steps like raising equipment out of flood zones, adding better fencing and cameras, and improving fire protection dramatically cut outage risk. On the cyber side, utilities are adding modern firewalls, better login rules, and constant monitoring so hackers cannot use the grid as a back door.

Burying lines is powerful but expensive. Underground lines are far less likely to be knocked out by wind, ice, or fire, which is why they make sense in dense cities and in the highest wildfire-risk areas. The tradeoff is cost. It can run roughly $3 million per mile for typical distribution lines and much more in rugged terrains. Outside of those hotspots, cheaper steps like insulated "covered" wires, more frequent switches, and quicker-acting protection often deliver more reliability per dollar.

For long routes that are already crowded, a smart middle path is to replace old wires with modern, high-capacity ones on the same towers. This "reconductoring" can double the amount that a power line carries without fighting years of new permits. It often costs a fraction of building a brand-new line and can be finished much faster. When we truly need new long-distance lines, we still build them, but we should use these cheaper tools first.

Permitting is the slow gear. New lines cross many counties and states, which means many approvals and frequent court challenges. Recent rule changes are pushing grid planners to think 10 to 20 years ahead, share costs more fairly, and study projects together rather than one at a time. That does not make transmission easy, but it does make it faster and clearer than the old way.

Smart sensors, software, and substation upgrades are the cheapest and fastest moves. These are the "months, not years" fixes. Reconductoring is the next-best value because it uses existing towers and land.

Undergrounding is the premium option for places where storms and fires hit hardest or where reliability must be near perfect. New long-distance lines create the biggest long-term benefits, but they take the longest to plan and permit.

Harden with brains first and muscle second. Use sensors and software to free up capacity on today's wires. Protect substations and improve cyber hygiene. Reconductor crowded lines to double capacity without new towers. Bury lines where risk and density demand it. Then build the new long-distance lines we still need. Follow that order and you get a stronger, more reliable grid at the lowest all-in cost, with a long runway of work for the companies ready to do it.

Quanta Services PWR is the crew that shows up with the trucks, skilled labor, and the project managers to actually build and fix the grid. If a utility needs to harden substations, swap in better wires, or underground a neighborhood circuit, Quanta can do it. The company also builds long-distance lines once it finally gets the green light. In simple terms, Quanta sells execution at scale.

Quanta's opportunity grows as utilities spend more on reliability and as new data centers and factories boost power demand. The backlog of work is deep, and many of these projects run for years. That gives Quanta a visible path for steady revenue and earnings growth. If grid spending rises to meet national goals, Quanta has room for outsized long-term gains because it is one of the few players large enough to take on the biggest jobs.

Hubbell HUBB makes the nuts and bolts of the grid. Think connectors that tie lines together, insulators that keep power where it belongs, surge protectors for substations, and simple automation gear that helps lines heal themselves after a fault. When a utility upgrades lines or rebuilds after a storm, pallets of Hubbell parts go out the door.

This is a pick-and-shovel business with durable pricing power. Utilities buy from approved lists and stick with brands they trust. As spending shifts toward grid hardening and automation, Hubbell's mix gets richer and margins improve. That sets the company up for steady growth and strong cash generation. If the cycle accelerates, the combination of higher volumes and better mix can compound earnings and drive strong long-term returns.

American Semiconductor AMSC makes equipment that keeps the grid stable when conditions get bumpy. Its systems act like shock absorbers for electricity. They balance voltage and reactive power so lights do not flicker when a big factory starts up, a wind farm ramps up, or a heat wave hits. Utilities bolt these units into substations to smooth power quality and prevent wider outages.

AMSC is a smaller company, which cuts both ways. Orders can be lumpy, but each win moves the needle. As more renewable projects connect and as cities add data centers and EV load, the need for these "grid stabilizers" grows. If adoption broadens, AMSC's revenue can scale quickly and operating leverage can kick in, creating the potential for outsized gains versus larger, slower-growing grid suppliers.

Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.

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