Electric utility provider FirstEnergy Corp. (FE) continues to add transmission lines across its service areas to meet the increasing demand for electricity on the heels of the shale gas boom.
Akron, OH-based FirstEnergy announced the completion of new transmission projects worth $6 million in its subsidiary, Ohio Edison’s service area. The company also plans to upgrade additional systems in the region.
The projects have been built to support new natural gas processing facilities in Ohio’s Utica Shale region and include high-voltage substation and transmission lines. These new customer facilities are expected to add 125 megawatts (“MW”) of electricity load growth equivalent to power 60,000 new homes in Ohio Edison's system. Hence the need of the hour is to bolster transmission lines in the region.
Other Recently Completed Projects
FirstEnergy has recently completed a $3 million project in southern Columbiana County to accommodate Ohio's Kensington processing facility. The project includes the upgrade of a substation with specialized equipment to assist in curbing power outages in that area.
Another project included the accomplishment of a 3.5-mile, 138-kilovolt (kV) transmission line to back Springfield Township’s Pennant Midstream natural gas processing facility located in Mahoning County. The upgrade comprised the installation of a steel pole and 81 new wooden poles.
Other Projects on the Anvil
In Dec 2014, FirstEnergy Corp announced that it will take up new transmission projects worth $100 million and assess the upgrade of additional systems in West Virginia’s Marcellus Shale gas industry. The new gas customer facilities will incorporate high-voltage substations and transmission lines (read: FirstEnergy Steps Up Transmission Projects on Shale Boom).
All these projects are a part of the company’s planned regulated transmission investment of $250 million, which will cater to increasing electric demand across its service territories. FirstEnergy intends to spend $4.2 billion in the 2014 to 2017 time span to meet rising electric load growth of 1,100 MW in the next five years.
Zacks Rank
FirstEnergy currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include PG&E Corp. (PCG), sporting a Zacks Rank #1 (Strong Buy) and Alliant Energy Corp. (LNT) and Atlantic Power Corp. (AT) carrying a Zacks Rank #2 (Buy).
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