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FirstEnergy's (FE) Unit to Enhance Power Line in Monmouth County
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FirstEnergy Corporation’s (FE - Free Report) subsidiary Jersey Central Power & Light (“JCP&L”) has begun upgrading two miles of a high-voltage power line in Monmouth County. This initiative will increase service reliability and help reduce service disruptions for its customers.
The upgrade is the fourth in a line of initiatives aimed at improving reliability for Central Jersey customers. In 2022, JCP&L began construction on two projects to upgrade 19 miles of transmission power lines in the Monmouth County region. This initiative will further benefit nearly 50,000 customers. The subsidiary aims to spend $223 million for upgrading more than 60 miles of transmission lines around the county.
Benefits of the Upgrade
The 34.5-kilovolt power line runs south from JCP&L's Elberon Substation to its Allenhurst Substation, traversing Long Branch, Ocean Township, Deal and Allenhurst. As part of the project, JCP&L aims to install new poles, wires and equipment in place of the existing ones that have been there since the 1970s.
More electrical load can be carried by the newly built cables, which will also be able to handle increased customer demand. In case of unanticipated service outages on nearby lines, it will also be able to carry more electricity. The project is expected to be completed by the end of 2023.
Additionally, this operation provides a backup power source that will help keep the lights on if the normal power cables or equipment need to be repaired or taken out of service.
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 and reduce the frequency and duration of customer outages. 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. This 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.
Utilities’ Focus on Infrastructure
In order to provide reliable services to customers, utilities make systematic investments 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 it 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 risen 1.4% compared with the industry’s 2.1% growth.
Image: Bigstock
FirstEnergy's (FE) Unit to Enhance Power Line in Monmouth County
FirstEnergy Corporation’s (FE - Free Report) subsidiary Jersey Central Power & Light (“JCP&L”) has begun upgrading two miles of a high-voltage power line in Monmouth County. This initiative will increase service reliability and help reduce service disruptions for its customers.
The upgrade is the fourth in a line of initiatives aimed at improving reliability for Central Jersey customers. In 2022, JCP&L began construction on two projects to upgrade 19 miles of transmission power lines in the Monmouth County region. This initiative will further benefit nearly 50,000 customers. The subsidiary aims to spend $223 million for upgrading more than 60 miles of transmission lines around the county.
Benefits of the Upgrade
The 34.5-kilovolt power line runs south from JCP&L's Elberon Substation to its Allenhurst Substation, traversing Long Branch, Ocean Township, Deal and Allenhurst. As part of the project, JCP&L aims to install new poles, wires and equipment in place of the existing ones that have been there since the 1970s.
More electrical load can be carried by the newly built cables, which will also be able to handle increased customer demand. In case of unanticipated service outages on nearby lines, it will also be able to carry more electricity. The project is expected to be completed by the end of 2023.
Additionally, this operation provides a backup power source that will help keep the lights on if the normal power cables or equipment need to be repaired or taken out of service.
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 and reduce the frequency and duration of customer outages. 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. This 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.
Utilities’ Focus on Infrastructure
In order to provide reliable services to customers, utilities make systematic investments 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 it 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 risen 1.4% compared with the industry’s 2.1% growth.
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.