Back to top

Image: Bigstock

FirstEnergy's (FE) Units to Enhance Wastewater Treatment Process

Read MoreHide Full Article

FirstEnergy Corporation’s (FE - Free Report) subsidiaries Mon Power and Potomac Edison have started construction on two projects that will enhance the wastewater treatment procedure at the companies' regulated power stations in West Virginia.

The projects received approval from the West Virginia Public Service Commission in 2022 as part of a multi-year, $142-million environmental compliance program. The upgrades support Fort Martin and Harrison’s continued operation until 2035 and 2040, when they are scheduled to retire. Together, the two plants produce 3,080 megawatts of power.

Benefits of the Move

In addition to helping Mon Power and Potomac Edison in continuing to support clean drinking water, agriculture and recreation in nearby communities, the environmental upgrades at Fort Martin Power Station in Maidsville, Monongalia County, and Harrison Power Station in Haywood, Harrison County, will help FirstEnergy’s subsidiaries in meeting the updated effluent limitation guideline requirements of the U.S. Environmental Protection Agency.

After the completion of the project, ashes from the furnaces will be turned into tiny bits and dropped onto conveyor belts for disposal. With the new method, there will be less wastewater that needs to be carefully treated before being disposed in the river, thereby protecting aquatic habitats.

Conveyor belts will be built as part of the renovations to move coal ash to a brand-new, three-sided concrete building on each plant's property. The dry ash will then be loaded into trucks and sent to a nearby authorized disposal site owned and operated by the companies. It is expected that the projects will be completed by the end of 2025.

FE’s Focus on Emission Reduction

The environmental impact of the project is in sync with FirstEnergy’s commitment to protecting and restoring the environment and creating a more sustainable future for its customers and communities. The company set a goal of reducing carbon emissions by at least 90% below 2005 level by 2045, and to become 100% carbon neutrality by 2050, with a mid-term goal of 30% reduction in greenhouse gases within its direct operational control by 2030 from the 2019 level.

FirstEnergy aims to achieve its emission target by replacing aging transmission, electrifying its vehicle fleet, moving away from coal generation and focusing on generation efficiencies.

Along with FirstEnergy, other electric power companies like Alliant Energy Corp. (LNT - Free Report) , Dominion Energy, Inc. (D - Free Report) and Xcel Energy, Inc. (XEL - Free Report) also aim to lower emissions and become carbon neutral in the future.  

Alliant Energy benefits from retiring coal-fired units, and adding clean assets to its portfolio to achieve its target of becoming carbon neutral by 2050.

LNT’s long-term (three to five years) earnings growth rate is 6.47%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 2.5%.

Dominion Energy aims to attain net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050. The company aims to cut emissions by 70-80% by 2035 from the 2005 level. By 2035, D also intends to make zero and low-emitting resources accountable for 99% of its electric generation.

D’s long-term earnings growth rate is 4%. It delivered an average earnings surprise of 4.3% in the last four quarters.

Xcel Energy is undertaking initiatives to produce and deliver clean energy to customers. It is reducing coal usage and aims to lower emissions by at least 80% by 2030 and achieve carbon neutrality by 2050.

XEL’s long-term earnings growth rate is 6.07%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 5.4%.

Price Performance

In the past year, shares of FirstEnergy have lost 13.5% compared with the industry’s 17.8% decline.

 

Zacks Investment Research
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.

 

Published in