FirstEnergy Inc.’s (FE) business wing Metropolitan Edison Company (Met-Ed) is progressing well with its efforts to improve power system reliability in the state of Pennsylvania. Met-Ed is currently carrying out vegetation management programs in communities located across 15 counties in the state.
The initiative is a part of FirstEnergy’s $15 million vegetation management project for 2013 and is undertaken to safeguard its electric infrastructure from damages caused by falling tree climbs during violent storms.
This involves inspection of trees followed by their trimming and is usually carried out on a four–year cycle basis in compliance with environmental rules. The company will take up vegetation management programs during the summer in the areas of Gettysburg, Hamburg, Lebanon, Reading, Stroudsburg, York and Upper Bucks County.
To date, FirstEnergy has pruned tree climbs over 1,100 circuit miles of power lines and estimates to complete a further 1,700 miles by the end of 2013.
FirstEnergy has been known to be actively involved in such programs which have made the company a well-liked electric service provider among consumers in their supply territories. Recently, another FirstEnergy subsidiary, Jersey Central Power & Light, concluded major enhancement work in northern and central New Jersey service zones in the aftermath of the hurricanes.
We anticipate FirstEnergy’s unrelenting efforts towards protection of electric infrastructure will contribute to smooth power delivery thereby leading to customer retention. As of now, the company has announced plans to invest roughly $1.1 billion for asset modernization in 2013.
These efforts have been successful in attracting non-FirstEnergy customers as well. At the end of the first quarter, its customer base increased 42% year over year.
However, FirstEnergy’s broad initiatives will be put to test in the coming months as the country’s primary weather tracking body National Oceanic and Atmospheric Administration ("NOAA") has projected extremely heavy storms in the span of Jun to Nov 2013.
Currently, FirstEnergy retains a Zacks Rank #3 (Hold). Utilities that are presently on a high in the energy market include Zacks Rank #2 (Buy) ALLETE Inc. (ALE), DTE Energy Company (DTE) and Entergy Corporation (ETR).
Based in Akron, Ohio, FirstEnergy engages in the generation, transmission and distribution of electricity in the United States.
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