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FirstEnergy's (FE) Arm to Boost Transmission Line in Eastern Ohio
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FirstEnergy Corporation’s (FE - Free Report) subsidiary American Transmission Systems, Inc. (ATSI) started upgrading 20 miles of a high-voltage power line in the Ohio counties of Belmont and Harrison in order to reinforce the local transmission system. The reconstructed 138-kilovolt line, which is the third stage of a bigger 64-mile transmission project, will increase service reliability, boost system resilience and handle potential increases in consumer demand for power.
The 20-mile stretch connects a substation in Belmont County, OH, to a substation in Columbiana County, OH, and is the southernmost part of the larger 64-mile project. In January 2023, the company completed the upgrade of the first 13-mile segment, located in the West Township area of Columbiana County and the August Township and Washington Township areas of Carroll County. In May 2023, work was completed on a further 9-mile section that runs through Harrison County's Rumley Township and Carroll County's Perry Township.
Benefits of the Move
The 20-mile line runs through the cities of St. Clairsville, Athens Township in Harrison County, Richland Township in Belmont County, Mead Township in Belmont County, and Pultney Township in Belmont County. The work will involve constructing bigger cables that can handle more electrical load and meet increased consumer demand in addition to replacing old wooden pole structures with new steel monopoles. The project is anticipated to be completed in late 2024.
The brand new, cutting-edge infrastructure is anticipated to boost system performance and lessen the frequency of service outages for users. In the future, the project will also help FirstEnergy in meeting the rising need for secure, reliable electricity in homes and businesses of eastern Ohio.
The project is a part of the multi-year effort Energizing the Future, which aims to modernize FE's transmission system with cutting-edge machinery and technology that will help further strengthen the power grid. Through 2022, FirstEnergy has invested more than $10 billion to the Energizing the Future program.
Need for Upgrades
A rise in temperature not only increases the demand for electricity but also poses a threat to electric infrastructure. These upgrades and maintenance tasks are crucial to maintaining service reliability and ensuring customer satisfaction.
FirstEnergy has been strengthening its transmission and distribution operations. During the second-quarter, the company upgraded its 69-kilovolt transmission line which 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 to help reduce unanticipated outages brought on by extreme weather.
Utilities’ Focus on Infrastructure
In order to provide reliable services to customers, utilities make systematic investment to upgrade transmission and distribution lines and develop new substations. The objective is to warrant proper supply of electricity to millions of customers across the United States.
Along with FirstEnergy, other electric power companies like Xcel Energy, Inc. (XEL - Free Report) , Exelon Corporation (EXC - Free Report) and Duke Energy (DUK - Free Report) are 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 6.07%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 5.4%.
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 6.3%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 3.5%.
Duke Energy remains focused on expanding its scale of operations and implementing modern technologies at its facilities. 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 6.09%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year increase of 6.5%.
Price Performance
In the past month, shares of FirstEnergy have lost 2% compared with the industry’s 5.1% decline.
Image: Bigstock
FirstEnergy's (FE) Arm to Boost Transmission Line in Eastern Ohio
FirstEnergy Corporation’s (FE - Free Report) subsidiary American Transmission Systems, Inc. (ATSI) started upgrading 20 miles of a high-voltage power line in the Ohio counties of Belmont and Harrison in order to reinforce the local transmission system. The reconstructed 138-kilovolt line, which is the third stage of a bigger 64-mile transmission project, will increase service reliability, boost system resilience and handle potential increases in consumer demand for power.
The 20-mile stretch connects a substation in Belmont County, OH, to a substation in Columbiana County, OH, and is the southernmost part of the larger 64-mile project. In January 2023, the company completed the upgrade of the first 13-mile segment, located in the West Township area of Columbiana County and the August Township and Washington Township areas of Carroll County. In May 2023, work was completed on a further 9-mile section that runs through Harrison County's Rumley Township and Carroll County's Perry Township.
Benefits of the Move
The 20-mile line runs through the cities of St. Clairsville, Athens Township in Harrison County, Richland Township in Belmont County, Mead Township in Belmont County, and Pultney Township in Belmont County. The work will involve constructing bigger cables that can handle more electrical load and meet increased consumer demand in addition to replacing old wooden pole structures with new steel monopoles. The project is anticipated to be completed in late 2024.
The brand new, cutting-edge infrastructure is anticipated to boost system performance and lessen the frequency of service outages for users. In the future, the project will also help FirstEnergy in meeting the rising need for secure, reliable electricity in homes and businesses of eastern Ohio.
The project is a part of the multi-year effort Energizing the Future, which aims to modernize FE's transmission system with cutting-edge machinery and technology that will help further strengthen the power grid. Through 2022, FirstEnergy has invested more than $10 billion to the Energizing the Future program.
Need for Upgrades
A rise in temperature not only increases the demand for electricity but also poses a threat to electric infrastructure. These upgrades and maintenance tasks are crucial to maintaining service reliability and ensuring customer satisfaction.
FirstEnergy has been strengthening its transmission and distribution operations. During the second-quarter, the company upgraded its 69-kilovolt transmission line which 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 to help reduce unanticipated outages brought on by extreme weather.
Utilities’ Focus on Infrastructure
In order to provide reliable services to customers, utilities make systematic investment to upgrade transmission and distribution lines and develop new substations. The objective is to warrant proper supply of electricity to millions of customers across the United States.
Along with FirstEnergy, other electric power companies like Xcel Energy, Inc. (XEL - Free Report) , Exelon Corporation (EXC - Free Report) and Duke Energy (DUK - Free Report) are 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 6.07%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 5.4%.
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 6.3%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 3.5%.
Duke Energy remains focused on expanding its scale of operations and implementing modern technologies at its facilities. 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 6.09%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year increase of 6.5%.
Price Performance
In the past month, shares of FirstEnergy have lost 2% compared with the industry’s 5.1% decline.
Image Source: Zacks Investment Research
Zacks Rank
FirstEnergy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.