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FirstEnergy's (FE) Unit to Invest $400M, Seeks BPU's Nod
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FirstEnergy Corp’s (FE - Free Report) subsidiary — Jersey Central Power & Light (JCP&L) — has sought approval from the New Jersey Board of Public Utilities (BPU) for a four-year infrastructure plan, Reliability Plus. To improve the reliability and service quality for its 1.1 million electric customers in New Jersey, the company will spend $400 million, which is more than planned annual investments.
Reliability Plus’s 4,000 enhancements will strengthen distribution lines, underground systems and overhead circuits. The plan will also focus on maintaining vegetation, which will lower the possibility of outages during severe storms in JCP&L's service area.
The company expects to provide $1.9 billion as overall benefit to customers through the estimated life of the equipment installed through the program. However, monthly electric bill of residential customers is expected to increase 25 cents.
Focus on Infrastructure
Utility companies are mostly regulated and need adequate amount of investment to serve customers more efficiently. A maintained network lowers power outage and ensures uninterrupted supply of electricity. Electric poles and lines that pass through vegetation require regular focus and investment that improves reliability of existing infrastructure and help the companies to cater to the rising demand.
FirstEnergy continues to upgrade and strengthen existing power lines and incorporates smart technology in the grid to provide better services to customers. The company initiated a modernization drive plan — Energizing the Future. It plans to invest nearly $10 billion in regulated business through 2021 to strengthen and upgrade existing infrastructure.
Investment in Infrastructure by Utilities
For utility companies, it is necessary to keep upgrading and maintaining existing assets to stay afloat. Better service increases customer’s reliability that makes investment toward expansion and maintenance of existing assets a necessity in the sector.
Black Hills Corporation (BKH - Free Report) has plans to invest nearly $2.3 billion over the next five years. NiSource (NI - Free Report) intends to invest $1.6-$1.8 billion annually in its utility infrastructure programs through 2020. Duke Energy (DUK - Free Report) expects to spend about $37.6 billion for electric utilities and infrastructure for the 2018-2022 periods.
In the last six months, shares of FirstEnergy have returned 18.6% against the industry’s decline of 1.4%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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FirstEnergy's (FE) Unit to Invest $400M, Seeks BPU's Nod
FirstEnergy Corp’s (FE - Free Report) subsidiary — Jersey Central Power & Light (JCP&L) — has sought approval from the New Jersey Board of Public Utilities (BPU) for a four-year infrastructure plan, Reliability Plus. To improve the reliability and service quality for its 1.1 million electric customers in New Jersey, the company will spend $400 million, which is more than planned annual investments.
Reliability Plus’s 4,000 enhancements will strengthen distribution lines, underground systems and overhead circuits. The plan will also focus on maintaining vegetation, which will lower the possibility of outages during severe storms in JCP&L's service area.
The company expects to provide $1.9 billion as overall benefit to customers through the estimated life of the equipment installed through the program. However, monthly electric bill of residential customers is expected to increase 25 cents.
Focus on Infrastructure
Utility companies are mostly regulated and need adequate amount of investment to serve customers more efficiently. A maintained network lowers power outage and ensures uninterrupted supply of electricity. Electric poles and lines that pass through vegetation require regular focus and investment that improves reliability of existing infrastructure and help the companies to cater to the rising demand.
FirstEnergy continues to upgrade and strengthen existing power lines and incorporates smart technology in the grid to provide better services to customers. The company initiated a modernization drive plan — Energizing the Future. It plans to invest nearly $10 billion in regulated business through 2021 to strengthen and upgrade existing infrastructure.
Investment in Infrastructure by Utilities
For utility companies, it is necessary to keep upgrading and maintaining existing assets to stay afloat. Better service increases customer’s reliability that makes investment toward expansion and maintenance of existing assets a necessity in the sector.
Black Hills Corporation (BKH - Free Report) has plans to invest nearly $2.3 billion over the next five years. NiSource (NI - Free Report) intends to invest $1.6-$1.8 billion annually in its utility infrastructure programs through 2020. Duke Energy (DUK - Free Report) expects to spend about $37.6 billion for electric utilities and infrastructure for the 2018-2022 periods.
Zacks Rank & Price Performance
FirstEnergy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last six months, shares of FirstEnergy have returned 18.6% against the industry’s decline of 1.4%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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