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FirstEnergy On Track to Upgrade 69 KV Transmission Lines
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FirstEnergy Corporation (FE - Free Report) continues with its effort to upgrade its existing infrastructure. The company announced that it is rebuilding and modernizing a 69-kilovolt (kV) transmission line which is worth $16 million.
The Project Detail
As a part of this project, the existing poles and wires are being replaced by the company with wood poles capable of carrying new higher-capacity conductor wires. The plan is to install about 13 miles of wire on 223 new wood structures within the existing right-of-way. The work is expected to be completed by this fall and will benefit approximately 10,000 electric customers near Mansfield, OH.
FirstEnergy intends to upgrade the transmission line which will enhance the flow of electricity across the local system band and will lower the frequency and duration of power outages. Remote control switching devices and fiber optic cable will be added too. This will allow grid operators to assess operational conditions faster.
“Energizing the Future”
FirstEnergy announced its ambitious “Energizing the Future” plan under which it aims at upgrading and expanding its regulated transmission capabilities. The company set aside a total budget of $1 billion in 2017 for the cause. It wants to continue with these investments through 2021 has made a plan to spend about $4.2 to $5.8 billion over the next five years.
Last week Jersey Central Power & Light (JCP&L), a subsidiary of FirstEnergy, announced the completion of the transmission system reinforcement project in Eatontown. The $4.8 million project aims at developing customer service reliability for over 4,000 consumers in the Monmouth County area. (Read more: FirstEnergy's Subsidiary Upgrades Eatontown Substation)
Investment by the Peers
Enhanced service reliability, reduced power outage and advanced technology are the keys to customer satisfaction. The big utility companies are all focusing on upgrading the existing substations and expanding their service territory.
CenterPoint Energy, Inc. (CNP - Free Report) plans to invest $7 billion from 2017 through 2021, including an investment of $1.5 billion in 2017. The company is currently focused on upgrading infrastructure and improving reliability.
NiSource, Inc (NI - Free Report) has planned utility infrastructure investments worth about $1.6–$1.7 billion in 2017 and has identified long-term infrastructure investments worth $30 billion, with over 90% of it allocated to regulated pipes and wires.
Price Movement
In the last one month, FirstEnergy gained 0.2% while the Zacks categorized Utility - Electric Power Industry gained 3.3%.
The company broadening regulated base and growing transmission lines are expected to boost earnings.
Avangrid, Inc. delivered a positive earnings surprise of 7.35% in the first quarter. Its Zacks Consensus Estimate for 2017 moved up nearly 0.5% to $2.21 per share in the last 60 days.
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FirstEnergy On Track to Upgrade 69 KV Transmission Lines
FirstEnergy Corporation (FE - Free Report) continues with its effort to upgrade its existing infrastructure. The company announced that it is rebuilding and modernizing a 69-kilovolt (kV) transmission line which is worth $16 million.
The Project Detail
As a part of this project, the existing poles and wires are being replaced by the company with wood poles capable of carrying new higher-capacity conductor wires. The plan is to install about 13 miles of wire on 223 new wood structures within the existing right-of-way. The work is expected to be completed by this fall and will benefit approximately 10,000 electric customers near Mansfield, OH.
FirstEnergy intends to upgrade the transmission line which will enhance the flow of electricity across the local system band and will lower the frequency and duration of power outages. Remote control switching devices and fiber optic cable will be added too. This will allow grid operators to assess operational conditions faster.
“Energizing the Future”
FirstEnergy announced its ambitious “Energizing the Future” plan under which it aims at upgrading and expanding its regulated transmission capabilities. The company set aside a total budget of $1 billion in 2017 for the cause. It wants to continue with these investments through 2021 has made a plan to spend about $4.2 to $5.8 billion over the next five years.
Last week Jersey Central Power & Light (JCP&L), a subsidiary of FirstEnergy, announced the completion of the transmission system reinforcement project in Eatontown. The $4.8 million project aims at developing customer service reliability for over 4,000 consumers in the Monmouth County area. (Read more: FirstEnergy's Subsidiary Upgrades Eatontown Substation)
Investment by the Peers
Enhanced service reliability, reduced power outage and advanced technology are the keys to customer satisfaction. The big utility companies are all focusing on upgrading the existing substations and expanding their service territory.
CenterPoint Energy, Inc. (CNP - Free Report) plans to invest $7 billion from 2017 through 2021, including an investment of $1.5 billion in 2017. The company is currently focused on upgrading infrastructure and improving reliability.
NiSource, Inc (NI - Free Report) has planned utility infrastructure investments worth about $1.6–$1.7 billion in 2017 and has identified long-term infrastructure investments worth $30 billion, with over 90% of it allocated to regulated pipes and wires.
Price Movement
In the last one month, FirstEnergy gained 0.2% while the Zacks categorized Utility - Electric Power Industry gained 3.3%.
The company broadening regulated base and growing transmission lines are expected to boost earnings.
Zacks Rank and Other Stock to Consider
FirstEnergy currently has a Zacks Rank #3 (Hold). A better-ranked stock in the utility space is Avangrid, Inc. (AGR - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Avangrid, Inc. delivered a positive earnings surprise of 7.35% in the first quarter. Its Zacks Consensus Estimate for 2017 moved up nearly 0.5% to $2.21 per share in the last 60 days.
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