USA Compression Partners, LP (NYSE:USAC) Q4 2022 Earnings Call Transcript

The grid is completely inadequate to be able to handle the size and type of electric compression which our customers are focused in on, the big and extra big type category. So there’s a lot of noise that you start to hear people want and talk a little bit about electric compression until they start to get into the weeds and really talk to their rural electric co-op or their distribution company and their electric provider, and they find out, a, that they don’t have sufficient capacity to provide even small horsepower let alone, big horsepower, let alone on any scale and scope. The magnitude of the improvements that are needed to enhance the grid, bolster the grid. The timeline required to get there are astronomical. We’ve seen no move by our current regime to speed up the permitting process.

So it’s one thing to talk about. Yes, there is money available to bolster the grid or build transmission and distribution lines. But without any form of regulatory and permitting improvements, that’s still a pipe dream. So I don’t think it’s there for the short-term.

Operator: We have no further questions. This will conclude today’s conference call. Thank you for your participation. You may now disconnect.