Quanta Services & San Diego Gas & Electric Resolve Sunrise Powerlink Transmission Project Change Order Dispute

Quanta Services, Inc. (Quanta)

announced today that its subsidiary PAR Electrical Contractors, Inc. (PAR) has reached a settlement agreement with San Diego Gas and Electric (SDG&E), a subsidiary of Sempra Energy, regarding an outstanding change order dispute associated with work performed by PAR for SDG&E's Sunrise Powerlink Transmission Line Project, which was completed in 2012. The two parties have agreed that PAR will receive a cash payment of $65 million from SDG&E, representing the final amount to compensate PAR for substantially all of the unpaid portion of its costs incurred on the project. Quanta Services Logo. "We are glad to have this issue resolved and look forward to future opportunities to work with SDG&E, as we have for many years, to provide solutions for expanding and maintaining their electrical infrastructure," said Jim O'Neil, Quanta's president and chief executive officer. Jeffrey Martin, chief executive officer of SDG&E added, "Quanta and SDG&E are pleased to have this matter behind us and are excited about the opportunity to work together again. Quanta has been an integral part of our infrastructure development activities throughout the past 15 years. We look forward to the opportunity to work with them on future projects." As a result of the settlement agreement, Quanta expects to recognize an estimated $50 million charge (approximately $31 million net of tax) to provision for long-term contract receivable in the fourth quarter of 2014. The estimated net impact of this provision on Quanta's results for the fourth quarter is an after tax reduction of approximately $0.14 per diluted share