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FirstEnergy (FE) Arm Upgrades High-Voltage Transmission Line
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FirstEnergy Corporation (FE - Free Report) announced that its subsidiary, American Transmission Systems, Inc (“ATSI”), has upgraded a high-voltage transmission line in Clark County, OH. The idea is to strengthen the regional transmission system and improve service reliability for about 35,000 consumers in the area.
The project is a part of the multi-year effort Energizing the Future, which aims to modernize FirstEnergy's transmission system using cutting-edge machinery and technology. These will strengthen the power grid and reduce the frequency and duration of customer outages.
FirstEnergy has committed more than $10 billion to the Energizing the Future program through 2022.
Need for Upgrades
A rise in temperature not only increases the demand for electricity but also poses a threat to electric infrastructure. The upgrades and maintenance at regular intervals are crucial in maintaining service reliability and ensuring customer satisfaction.
The 69-kilovolt transmission line traverses Springfield Township and Moorefield Township for a distance of slightly more than 11 miles to the northeast, with sections of the line running alongside Interstate 68. ATSI replaced 105 wood poles over a six-mile stretch of the line and installed five new steel poles on foundations. The objective was to reduce unanticipated outages caused by extreme weather.
The FE subsidiary also installed new wires along a portion of the route and made equipment upgrades at four substations that connect to the line. Construction work on the $20-million project started in August 2022 and ended in June.
Utilities' Focus on Infrastructure Upgrades
In order to provide reliable service to customers, utilities make systematic investments to upgrade transmission and distribution lines and develop new substations. The idea is to warrant proper supply of electricity to millions of customers across the United States.
Apart from FirstEnergy, other electric power companies like Xcel Energy, Inc. (XEL - Free Report) , Exelon Corporation (EXC - Free Report) and Duke Energy (DUK - Free Report) are also adopting measures to strengthen their existing infrastructure.
Xcel Energy aims to spend $29.5 billion during 2023-2027, out of which the company plans to invest nearly $18 billion in strengthening its electric distribution and transmission operations.
XEL’s long-term (three to five years) earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 6%.
Exelon invests substantially in infrastructure projects. It plans to spend nearly $31.3 billion during 2023-2026 on regulated utility operations for grid modernization and enhancement of its infrastructure’s resilience.
EXC’s long-term earnings growth rate is 6.68%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 4%.
Duke Energy remains focused on expanding its scale of operations and implementing modern technologies at its facilities. It invests heavily in infrastructure and expansion projects. Almost 85% of the company’s planned investment funds its generation fleet transition and grid modernization. This includes approximately $75 billion to modernize and strengthen its transmission and distribution infrastructure.
DUK’s long-term earnings growth rate is 6.18%. The Zacks Consensus Estimate for 2023 EPS implies year-over-year growth of 6.5%.
Price Performance
In the past month, shares of FirstEnergy have rallied 1.8% against the industry’s 1.5% decline.
Image: Bigstock
FirstEnergy (FE) Arm Upgrades High-Voltage Transmission Line
FirstEnergy Corporation (FE - Free Report) announced that its subsidiary, American Transmission Systems, Inc (“ATSI”), has upgraded a high-voltage transmission line in Clark County, OH. The idea is to strengthen the regional transmission system and improve service reliability for about 35,000 consumers in the area.
The project is a part of the multi-year effort Energizing the Future, which aims to modernize FirstEnergy's transmission system using cutting-edge machinery and technology. These will strengthen the power grid and reduce the frequency and duration of customer outages.
FirstEnergy has committed more than $10 billion to the Energizing the Future program through 2022.
Need for Upgrades
A rise in temperature not only increases the demand for electricity but also poses a threat to electric infrastructure. The upgrades and maintenance at regular intervals are crucial in maintaining service reliability and ensuring customer satisfaction.
The 69-kilovolt transmission line traverses Springfield Township and Moorefield Township for a distance of slightly more than 11 miles to the northeast, with sections of the line running alongside Interstate 68. ATSI replaced 105 wood poles over a six-mile stretch of the line and installed five new steel poles on foundations. The objective was to reduce unanticipated outages caused by extreme weather.
The FE subsidiary also installed new wires along a portion of the route and made equipment upgrades at four substations that connect to the line. Construction work on the $20-million project started in August 2022 and ended in June.
Utilities' Focus on Infrastructure Upgrades
In order to provide reliable service to customers, utilities make systematic investments to upgrade transmission and distribution lines and develop new substations. The idea is to warrant proper supply of electricity to millions of customers across the United States.
Apart from FirstEnergy, other electric power companies like Xcel Energy, Inc. (XEL - Free Report) , Exelon Corporation (EXC - Free Report) and Duke Energy (DUK - Free Report) are also adopting measures to strengthen their existing infrastructure.
Xcel Energy aims to spend $29.5 billion during 2023-2027, out of which the company plans to invest nearly $18 billion in strengthening its electric distribution and transmission operations.
XEL’s long-term (three to five years) earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 6%.
Exelon invests substantially in infrastructure projects. It plans to spend nearly $31.3 billion during 2023-2026 on regulated utility operations for grid modernization and enhancement of its infrastructure’s resilience.
EXC’s long-term earnings growth rate is 6.68%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 4%.
Duke Energy remains focused on expanding its scale of operations and implementing modern technologies at its facilities. It invests heavily in infrastructure and expansion projects. Almost 85% of the company’s planned investment funds its generation fleet transition and grid modernization. This includes approximately $75 billion to modernize and strengthen its transmission and distribution infrastructure.
DUK’s long-term earnings growth rate is 6.18%. The Zacks Consensus Estimate for 2023 EPS implies year-over-year growth of 6.5%.
Price Performance
In the past month, shares of FirstEnergy have rallied 1.8% against the industry’s 1.5% decline.
Image Source: Zacks Investment Research
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.