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FirstEnergy (FE) Plans Transmission Substation in Frederick
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FirstEnergy Corporation’s (FE - Free Report) unit, Potomac Edison, plans to build a high-voltage transmission substation at Quantum Loophole’s 2,100-acre data center campus in Frederick, MD, to provide the power required for the data center.
The new transmission substation of 230 kilovolts (kV) will be located near the center of the Quantum Frederick campus. The new substation is expected to provide 240 megawatts (MW) of power in its initial phase and will eventually accommodate up to 1,000 MW in the future.
In addition, Potomac Edison plans to reenergize a 230-kV transmission line, which previously served the property for supporting the campus. As part of the project, two transformers will be installed to reduce the high-voltage electricity coming from the substation and convert it into low-voltage power, allowing it to be effectively delivered to Quantum Frederick buildings.
Need for Infrastructure Upgrade
Electricity generation, transmission and distribution facilities maintained by utilities have the possibility of an equipment breakdown or failure due to the aging infrastructure. This requires the construction of new cutting-edge technology and equipment.
As the demand for electricity rises in Frederick due to continued growth, this new substation will increase the capacity of the distribution system and help lessen the frequency and length of power outages for thousands of customers.
FirstEnergy plans to invest $3.3 billion in 2022 and $17 billion in the 2021-2025 period to strengthen the grid and lead a clean energy transition. On Jul 15, 2022, FirstEnergy filed the new four-year Grid Mod II program with the Ohio commission, proposing a $626-million capital investment to expand the deployment of Grid Mod technologies and help reduce the frequency of power outages.
To provide a 24X7 electricity supply for consumers, other utilities are investing heavily in strengthening their infrastructure. They are replacing old transmission and distribution lines and adopting technological upgrades to increase the resiliency of infrastructure for withstanding the impact of extreme weather conditions. To name a few are Xcel Energy (XEL - Free Report) , NiSource (NI - Free Report) and Pinnacle West Capital (PNW - Free Report) .
Xcel Energy continues to invest substantially in its utility assets and aims to strengthen and expand its transmission, distribution, electric generation and renewable projects. XEL aims to spend $26 billion during the 2022-2026 period, which includes $1.5 to $2.5 billion in incremental opportunities.
NiSource is working on a long-term utility infrastructure modernization program and made capital investments worth $1.9 billion in 2021. It plans to invest in the range of $2.4-$2.7 billion in 2022. NI estimated $40-billion long-term natural gas and electric infrastructure investment opportunities, which are expected to drive earnings beyond 2024.
To efficiently serve its expanding customer base, Pinnacle West Capital has systematic investment plans to increase generation and strengthen its transmission and distribution lines. After investing $1.5 billion in 2021, it aims at investing $1.53 billion in 2022. PNW also plans to invest $4.7 billion during the 2022-2024 period.
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FirstEnergy (FE) Plans Transmission Substation in Frederick
FirstEnergy Corporation’s (FE - Free Report) unit, Potomac Edison, plans to build a high-voltage transmission substation at Quantum Loophole’s 2,100-acre data center campus in Frederick, MD, to provide the power required for the data center.
The new transmission substation of 230 kilovolts (kV) will be located near the center of the Quantum Frederick campus. The new substation is expected to provide 240 megawatts (MW) of power in its initial phase and will eventually accommodate up to 1,000 MW in the future.
In addition, Potomac Edison plans to reenergize a 230-kV transmission line, which previously served the property for supporting the campus. As part of the project, two transformers will be installed to reduce the high-voltage electricity coming from the substation and convert it into low-voltage power, allowing it to be effectively delivered to Quantum Frederick buildings.
Need for Infrastructure Upgrade
Electricity generation, transmission and distribution facilities maintained by utilities have the possibility of an equipment breakdown or failure due to the aging infrastructure. This requires the construction of new cutting-edge technology and equipment.
As the demand for electricity rises in Frederick due to continued growth, this new substation will increase the capacity of the distribution system and help lessen the frequency and length of power outages for thousands of customers.
FirstEnergy plans to invest $3.3 billion in 2022 and $17 billion in the 2021-2025 period to strengthen the grid and lead a clean energy transition. On Jul 15, 2022, FirstEnergy filed the new four-year Grid Mod II program with the Ohio commission, proposing a $626-million capital investment to expand the deployment of Grid Mod technologies and help reduce the frequency of power outages.
Zacks Rank & Price Performance
Currently, FirstEnergy carries a Zacks Rank #2 (Buy). In the past three months, shares of FE have risen 1.4% against the industry’s decline of 5.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Other Utilities’ Focus on Infrastructure
To provide a 24X7 electricity supply for consumers, other utilities are investing heavily in strengthening their infrastructure. They are replacing old transmission and distribution lines and adopting technological upgrades to increase the resiliency of infrastructure for withstanding the impact of extreme weather conditions. To name a few are Xcel Energy (XEL - Free Report) , NiSource (NI - Free Report) and Pinnacle West Capital (PNW - Free Report) .
Xcel Energy continues to invest substantially in its utility assets and aims to strengthen and expand its transmission, distribution, electric generation and renewable projects. XEL aims to spend $26 billion during the 2022-2026 period, which includes $1.5 to $2.5 billion in incremental opportunities.
NiSource is working on a long-term utility infrastructure modernization program and made capital investments worth $1.9 billion in 2021. It plans to invest in the range of $2.4-$2.7 billion in 2022. NI estimated $40-billion long-term natural gas and electric infrastructure investment opportunities, which are expected to drive earnings beyond 2024.
To efficiently serve its expanding customer base, Pinnacle West Capital has systematic investment plans to increase generation and strengthen its transmission and distribution lines. After investing $1.5 billion in 2021, it aims at investing $1.53 billion in 2022. PNW also plans to invest $4.7 billion during the 2022-2024 period.