We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FirstEnergy (FE) to Lower Customer Bill Through Rate Review
Read MoreHide Full Article
FirstEnergy Corporation (FE - Free Report) recently announced that Public Service Commission (PSC) of West Virginia has approved new rates for the subsidiaries- Mon Power (“MP”) and Potomac Edison (“PE”). The agreement will lower electric rates by more than $77 million in 2019. The new rates are effective from Jan 1, 2019 to Dec 31, 2019.
Customers to Benefit From Rate Reduction
Utility companies are generally regulated in nature. These regulated companies are required to make investments toward addition, upgrade and maintenance of utility infrastructure. The utilities recoup the invested amount through rate revisions approved by the commissions. However, these companies frequently undertake initiatives to provide customers with lower bills. FirstEnergy will offer lower rates to West Virginia customers on the back of reduced costs for fuel, purchased power and energy efficiency programs lead.
A typical residential customer that consumes 1,000 kilowatt-hours of electricity will receive reduction of 2.2% in monthly bills. The bill for West Virginia customers will drop to $105.83 from the current $108.25. The new rates will be 19% lower than national average.
Federal Tax Cut Benefits Customers
MP and PE provide electric service to West Virginia customers through traditional cost-based and regulated utility ratemaking. MP serves 385,000 customers in West Virginia and tries to provide better services with affordable cost. This will mark the second time in recent time when customers will receive reduced bills. In Sep 2018, monthly bills were reduced by $4, which includes effects of federal tax cut.
In 2018, other large electric utilities like NextEra Energy, Inc (NEE - Free Report) , Duke Energy Corp (DUK - Free Report) and Exelon Corp (EXC - Free Report) passed their tax benefits to customers to reward them with lower bills.
Price Movement
Shares of FirstEnergy have rallied 21.9% in the past year, against the industry’s decline of 0.5%.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
FirstEnergy (FE) to Lower Customer Bill Through Rate Review
FirstEnergy Corporation (FE - Free Report) recently announced that Public Service Commission (PSC) of West Virginia has approved new rates for the subsidiaries- Mon Power (“MP”) and Potomac Edison (“PE”). The agreement will lower electric rates by more than $77 million in 2019. The new rates are effective from Jan 1, 2019 to Dec 31, 2019.
Customers to Benefit From Rate Reduction
Utility companies are generally regulated in nature. These regulated companies are required to make investments toward addition, upgrade and maintenance of utility infrastructure. The utilities recoup the invested amount through rate revisions approved by the commissions. However, these companies frequently undertake initiatives to provide customers with lower bills. FirstEnergy will offer lower rates to West Virginia customers on the back of reduced costs for fuel, purchased power and energy efficiency programs lead.
A typical residential customer that consumes 1,000 kilowatt-hours of electricity will receive reduction of 2.2% in monthly bills. The bill for West Virginia customers will drop to $105.83 from the current $108.25. The new rates will be 19% lower than national average.
Federal Tax Cut Benefits Customers
MP and PE provide electric service to West Virginia customers through traditional cost-based and regulated utility ratemaking. MP serves 385,000 customers in West Virginia and tries to provide better services with affordable cost. This will mark the second time in recent time when customers will receive reduced bills. In Sep 2018, monthly bills were reduced by $4, which includes effects of federal tax cut.
In 2018, other large electric utilities like NextEra Energy, Inc (NEE - Free Report) , Duke Energy Corp (DUK - Free Report) and Exelon Corp (EXC - Free Report) passed their tax benefits to customers to reward them with lower bills.
Price Movement
Shares of FirstEnergy have rallied 21.9% in the past year, against the industry’s decline of 0.5%.
Zacks Rank
FirstEnergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>