Back to top

Image: Bigstock

FirstEnergy (FE) Installs New Charging Units Under EV Driven

Read MoreHide Full Article

FirstEnergy Corp. (FE - Free Report) announced that its unit, Potomac Edison, successfully installed four new electric vehicles (EV) fast-charging stations in Frostburg and Friendsville, MD and expanded the network of publicly available EV charging stations in Maryland.

The new stations are part of Potomac Edison's EV Driven pilot program, which is designed to benefit the state’s environment by reducing auto emissions. Under this program, Potomac Edison is expected to install 59 charging stations, including 20 fast-charging stations, across the seven-county Maryland territory over the course of the program, which runs through 2023.

Last year, Potomac Edison installed a few more EV charging units in Maryland to assist in creating the infrastructure for the higher usage of EV vehicles.

Motive Behind the Installation

The installation of fast-charging stations through the EV Driven program will help lower emissions than gasoline-powered vehicles, which will further reduce greenhouse gas releases from vehicle movements into the environment. Maryland’s goal is to reach 300,000 zero-emission vehicles on road by 2025. Potomac Edison’s EV charging station will assist the state in creating the infrastructure to support the movement of EVs.

Due to the developing EV charging infrastructure, people will shift toward electric vehicles usage, which is a clean and efficient alternative to gasoline-powered vehicles. Advanced EVs are expected to reduce traveling expenses and provide average gas per mile as low as one-third of the cost per mile of gasoline. These new fast-charging stations, also known as direct-current fast chargers, can provide 80% charge for most EVs in less than an hour.

Zacks Rank & Price Performance

FirstEnergy presently carries a Zacks Rank #4 (Sell). In the past three months, shares of FE have rallied 13.1%, outperforming the industry’s rise of 1.2%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
Image Source: Zacks Investment Research

Utilities Supporting EV Transition

Electric utilities that are adopting measures to develop the EV infrastructure, along with supplying clean and reliable energy to their customers, include Duke Energy (DUK - Free Report) , Xcel Energy (XEL - Free Report) and Alliant Energy (LNT - Free Report) .

Duke Energy has been focusing on the growing EV market by already installing more than 627 charging stations. Duke Energy pledges to reduce emissions from its fleet by electrifying all light-duty vehicles by 2030 and 50% of medium-duty, heavy-duty and off-road vehicles with electric, hybrid electric or carbon-free alternatives.

DUK’s long-term (three to five years) earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for Duke Energy’s 2022 earnings implies year-over-year growth of 4.4%. The company has a four-quarter earnings surprise of 2.04%, on average.

Xcel Energy launched an EV smart-charging pilot in Colorado for customers of five major automakers to make it easier for consumers to switch to EVs and charge them at times when renewable energy production is high and demand of the energy grid is low.

Xcel Energy’s long-term earnings growth is currently pegged at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings implies year-over-year growth of 7.4%. Xcel Energy has a four-quarter earnings surprise of 2.09%, on average.

Alliant Energy installed a new fast-charging station at the busy interchange of the Beaver Dam highway 151 corridor, which can charge four cars at one time. Alliant Energy announced retiring all the existing coal-fired generation units by 2040 to lower emissions from 2005 levels by 50% and 100% within 2030 and 2050, respectively.

LNT’s long-term earnings growth is currently pegged at 6.1%. The Zacks Consensus Estimate for Alliant Energy’s 2022 earnings implies year-over-year growth of 4.6%. Alliant Energy has a four-quarter earnings surprise of 3.3%, on average.