FirstEnergy Corporation ( FE Quick Quote FE - Free Report) stated that its unit, Potomac Edison, is ready to install seven level 2 electric vehicle (EV) charging stations at multifamily properties in Maryland at no cost. Level 2 charging stations can simultaneously charge two vehicles and provide 8 to 24 miles of range per hour of charging. 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 and supporting Maryland's goal to reach 300,000 zero-emission vehicles on the road by 2025. As part of this effort, the unit will offer rebates of $300 to residential customers and $20,000 to multifamily property owners. Motive Behind the Installation
The installation of fast-charging stations through the EV Driven program will help lower emissions generated from transportation. Potomac Edison’s EV charging station will assist the state in creating the EV charging infrastructure to support the increasing usage of EVs. As part of the EV Driven program, Potomac Edison is expected to install 59 charging stations, including 20 fast-charging stations, across the seven-county Maryland territory through 2023.
Due to the developing EV charging infrastructure, people will shift to electric vehicle usage, which is a clean and efficient alternative to gasoline-powered vehicles. Advanced EVs are expected to reduce traveling expenses and provide electricity as low as one-third of the cost per mile of gasoline. EV Usage to Lower Emission
As the number of EVs on the road increases, the annual demand for EV chargers also surges. While the overall U.S. vehicle sales volume declined for most companies in the first quarter of 2022, increasing EV deliveries (up around 60% year over year) remained a bright spot. According to EVadoption, U.S. EV sales are expected to grow by 29.5% in 2030 from 3.4% in 2021. This will result in a total EV sales increase to 4.7 million from 0.5 million in 2021.
This highlights bright prospects for utility companies like FirstEnergy to prosper on the EV growth opportunity through more installations of EV charging stations in the service territory. FirstEnergy plans to electrify 30% of its vehicle fleet by 2030 and further 100% by 2050, which will allow the company to reduce emissions. Zacks Rank & Price Performance
FirstEnergy presently carries a Zacks Rank #4 (Sell). In the past year, shares of FE have rallied 0.7% against the
industry’s decline of 2.6%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here 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 Quick Quote DUK - Free Report) , Xcel Energy ( XEL Quick Quote XEL - Free Report) and Alliant Energy ( LNT Quick Quote 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 6.1%. The company has a four-quarter earnings surprise of 0.9%, on average. Xcel Energy launched an EV smart-charging pilot in Colorado for the 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%. XEL has a four-quarter earnings surprise of 0.4%, 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 the 2005 levels by 50% and 100% within 2030 and 2050, respectively. LNT’s long-term earnings growth is currently pegged at 5.8%. Alliant Energy has a four-quarter earnings surprise of 5.1%, on average.