Jacobs Announced as Program Manager and Owners Engineer for Xcel Energy

Rhea-AI Summary

Jacobs (NYSE: J) has been selected as Program Manager and Owners Engineer for Xcel Energy to support the delivery of a multi-billion-dollar program of projects across eight Western and Midwestern states. The partnership will focus on implementing Xcel Energy's $45 billion investment plan announced in October 2024, aimed at making their grid cleaner, stronger, and more efficient.

Jacobs will establish a Central Program Office and Major Projects Group, executing a portfolio of projects, developing project selection recommendations, and standardizing delivery standards for transmission, distribution, and generation projects. The program builds on Jacobs' existing relationship with Xcel Energy and leverages their experience across the U.S., U.K., and Asia-Pacific.

This selection adds to Jacobs' recent program management wins, including the California hydrogen hub ARCHES project and MTerra Solar in the Philippines. Notably, Jacobs was ranked No.1 for the fourth consecutive year in Engineering News-Record's global Top 50 Program Management Firms.

Positive

• Secured major contract as Program Manager for Xcel Energy's $45 billion investment plan
• Expands presence in energy infrastructure sector across eight US states
• Strengthens existing relationship with major utility provider
• Demonstrates continued industry leadership with #1 ranking in Program Management

Negative

• None.

Insights

Infrastructure Investment Analyst

This strategic contract win positions Jacobs at the forefront of America's largest utility infrastructure modernization initiative. The $45 billion Xcel Energy investment program represents a transformative opportunity in several key dimensions:

The program's scale and complexity align perfectly with Jacobs' core strengths in program management, where they've maintained the #1 global ranking for four consecutive years. This positions them to capture a significant share of the program management fees from this multi-year initiative.

Three critical aspects make this contract particularly valuable:

• The establishment of a Central Program Office creates deep operational integration with Xcel Energy, potentially leading to long-term recurring revenue streams beyond the initial contract
• The standardization of capital delivery processes positions Jacobs to capture additional value from knowledge transfer and consulting services
• The contract's timing coincides with unprecedented utility infrastructure investment driven by grid modernization, renewable integration, and electrification trends

This win builds on Jacobs' momentum in the energy transition sector, following recent victories in hydrogen infrastructure (ARCHES) and utility-scale solar projects. The company's expertise across transmission, distribution, and generation positions them to capture additional opportunities as utilities nationwide undertake similar grid modernization programs.

The contract's strategic value extends beyond immediate revenue impact. By establishing standardized processes and knowledge transfer mechanisms, Jacobs is positioning itself as an indispensable partner in the utility sector's transformation, potentially leading to similar engagements with other major utilities undertaking grid modernization initiatives.

Leading execution of major program of critical transmission, distribution and generation projects in North and Central US

DALLAS, Feb. 17, 2025 /PRNewswire/ -- Jacobs (NYSE: J) was selected as Program Manager and Owners Engineer to support Xcel Energy in providing customers with safe and reliable energy services at a competitive price, while meeting the specifications needed for a low-carbon future.

Xcel Energy is a critical energy provider to millions of homes and businesses across eight Western and Midwestern states. In the coming years, Xcel Energy is looking to implement a step-change in its capital program and is working with Jacobs to establish a Central Program Office and Major Projects Group in support of delivery of a multi-billion-dollar program of projects.

Jacobs will execute a portfolio of Xcel Energy's projects, develop recommendations for project selection and standardize, deploy and transfer knowledge to Xcel Energy employees. Creating and maintaining core capital delivery standards will enable consistent execution for Xcel Energy's portfolio of transmission, distribution and generation projects.

"This program continues Jacobs' relationship with Xcel Energy in delivering capital projects, upgrading utility infrastructure and supporting future load demand requirements," said Jacobs Executive Vice President Fiachra Ó Cléirigh. "Our transmission and distribution, generation and program management experience across the U.S., U.K., and Asia-Pacific will support Xcel Energy as they provide reliable energy services for their consumers."

"In October 2024, Xcel Energy announced a $45 billion investment plan to make our grid cleaner, stronger and more efficient, ensuring we can meet unprecedented growth in our customers' demand for electricity while keeping their bills as low as possible," said Xcel Energy Senior Vice President of Customer Delivery Michael Lamb. "Our country's energy grid faces the biggest transition in a century. We will meet this historic moment by powering new technologies, U.S. manufacturing expansion, and the electrification of vehicles, homes and businesses."

Xcel Energy's investment plan focuses on strengthening the resiliency of its transmission and distribution systems while adding carbon-free and always-available energy generation resources. By doing so, the company will continue to deliver energy to customers when and where they need it.

This program adds to other recent program management and owners engineer wins across Jacobs' energy market, such as serving as program manager for California hydrogen hub, Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and delivering engineering services for MTerra Solar in the Philippines, which is poised to become one of the world's largest solar farms when complete.

Jacobs was named No.1 for the fourth consecutive year by Engineering News-Record's global Top 50 Program Management Firms and is ranked No. 2 in Power, Solar Power and Wind Power by Engineering News-Record in 2024.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. 

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum (together, "new Amentum") on Jacobs' and new Amentum's businesses, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation and executive orders related to governmental spending, and changes in U.S. or foreign tax laws, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs or trade policies, that may adversely impact our future financial positions or results of operations, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, and increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements, see our filings with the U.S. Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

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SOURCE Jacobs

FAQ

What is the value of Xcel Energy's investment plan that Jacobs (NYSE: J) will manage?

Xcel Energy announced a $45 billion investment plan in October 2024 that Jacobs will help manage to make the grid cleaner, stronger, and more efficient.

How many states will be affected by Jacobs' (NYSE: J) program management for Xcel Energy?

The program will cover Xcel Energy's operations across eight Western and Midwestern states.

What are the main responsibilities of Jacobs (NYSE: J) in the Xcel Energy contract?

Jacobs will establish a Central Program Office, execute project portfolios, develop project selection recommendations, and standardize delivery standards for transmission, distribution, and generation projects.

What recent industry recognition has Jacobs (NYSE: J) received in program management?

Jacobs was ranked No.1 for the fourth consecutive year by Engineering News-Record's global Top 50 Program Management Firms in 2024.