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PPL, PEG to Construct Power Line

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PPL Corp.'s (PPL - Free Report) subsidiary PPL Electric Utilities has announced its plan to start the Susquehanna-Roseland power line project, jointly with Public Service Enterprise Group Inc.’s (PEG - Free Report) unit Public Service Electric & Gas Company. The project will begin on Sep 3, 2013.

PPL Corp. and Public Service Enterprise will install the 145-mile long Susquehanna-Roseland power line, spanning from Berwick, Pa. to Roseland, N.J. Further, the companies will construct new concrete foundations and new poles, replace the existing aging power line, and fix new wires.

The project covers the Delaware Water Gap National Recreation Area, the Middle Delaware National Scenic and Recreational River, and the Appalachian National Scenic Trail.

The project will help the companies to provide uninterrupted service to their customers while strengthening system competence and boosting environmental performance. These factors will subsequently improve the companies’ customer reliability and public safety.

It is quite obvious from PPL Corp.’s capital spending program that the company currently intends to upgrade its electricity distribution assets. The company is in the middle of numerous important projects, including the development of the Lackawanna Substation.

As of Jun 30, 2013, PPL Corp. had cash and cash equivalents of $711 million and net cash provided by operating activities during the first six months of 2013 of $947 million. The company’s strong financial position encourages it to follow steady infrastructure development activities.

Allentown, Pa.-based PPL Corp. generates and delivers electricity and natural gas to its customers in the U.S. and UK.

PPL Corp. currently has a Zacks Rank #3 (Hold). Other stocks in the industry that are worth considering include Huaneng Power International, Inc. (HNP - Free Report) with a Zacks Rank #1 (Strong Buy), and Alliant Energy Corp. (LNT - Free Report) with a Zacks Rank #2 (Buy).

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