Akron, OH-based FirstEnergy Corp. FE announced that it will undertake electric enhancement investments in the service areas of its Pennsylvania Power Company (Penn Power) and West Penn Power Company.
After successfully completing sizable infrastructure investments at various units in 2014, FirstEnergy continues to push forward with its reliability infrastructure investments this year.
In 2014, FirstEnergy had collectively spent $296 million toward strengthening the infrastructure at the two above-mentioned subsidiaries. Of the total capital outlay, $124 million was spent on transmission projects owned by FirstEnergy’s transmission companies.
Primary projects for the current year include expansion of transmission lines, construction of new circuits, replacement of utility poles and underground cables, installation of remote control devices to reduce the frequency of outages as well as relocation of substation equipment at a power plant that is going out of service.
Earlier in the month, the utility firm divulged its plans to invest over $1 billion at its Toledo Edison, Ohio Edison, The Illuminating Company, Potomac Edison and the Mon Power service areas.
These investments form part of the company’s “Energizing the Future” initiative that began in 2014 and is expected to continue through 2017. This plan was undertaken primarily to upgrade and expand the company’s transmission system.
Apart from reliability, these investments are also expected to increase resiliency in the bulk electric system. FirstEnergy feels the need to fortify its distribution systems, particularly after experiencing a string of storms recently in its service areas.
Zacks Rank
FirstEnergy currently has a Zacks Rank #3 (Hold). Stocks with a better rank in the electric utility space are Abengoa Yield plc ABY, sporting a Zacks Rank #1 (Strong Buy), and Alliant Energy Corporation LNT and Avista Corp. AVA, carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment