Crews Make Progress Restoring Power to Customers Following Historic Storms

Rhea-AI Summary

FirstEnergy (NYSE: FE) crews, along with support from 17 states, are working to restore power to customers in Greater Cleveland following historic storms on Aug. 6. Over 627,700 customers across FirstEnergy's footprint lost power, with approximately 430,000 in Northeast Ohio. As of 10 a.m., The Illuminating Company has restored power to 198,400 of 310,000 affected customers, with 112,000 still without service. The global Estimated Time of Restoration (ETR) is Wednesday, Aug. 14 at 11:30 p.m., though most customers will have service restored earlier. Ohio Edison has restored power to over 99% of the 118,100 affected customers, with the remaining 600 expected to have service by 11:00 p.m. tonight.

Positive

• Large-scale restoration effort with approximately 7,570 workers from 17 states
• Power restored to 198,400 out of 310,000 affected customers in The Illuminating Company territory
• Ohio Edison restored power to over 99% of 118,100 affected customers

Negative

• Approximately 112,000 customers still without power in The Illuminating Company territory
• Global Estimated Time of Restoration extends to August 14, indicating prolonged outages for some customers

Insights

Utility Industry Analyst

This storm recovery effort by FirstEnergy (NYSE: FE) is significant but not likely to have a major impact on the company's stock. Utilities typically have regulatory mechanisms to recover storm costs, minimizing financial impact. However, the scale of the outage (627,700 customers affected) and extended restoration time (up to Aug. 14 for some) could lead to regulatory scrutiny and potential customer dissatisfaction.

The mobilization of 7,570 workers from 17 states demonstrates FirstEnergy's robust emergency response capabilities, which is positive for investor confidence. The company's proactive communication and use of technology for outage reporting and ETR updates are also commendable. These factors may mitigate reputational risks associated with prolonged outages.

Financial Analyst

While the storm's impact is substantial, it's unlikely to significantly affect FirstEnergy's long-term financial performance. Utilities typically have regulatory mechanisms to recover storm-related costs, which should protect the company's bottom line. However, investors should watch for any potential regulatory penalties if restoration efforts are deemed inadequate.

The extensive mobilization of resources may lead to higher short-term operational costs, but these are usually recoverable. The lack of impact from Hurricane Debby is a positive, as it allowed for a faster response to local events. Investors should monitor FirstEnergy's next earnings report for any material impact on quarterly results or guidance adjustments related to this event.

Risk Management Specialist

This event highlights the increasing frequency and severity of extreme weather events, a growing concern for utility companies. FirstEnergy's ability to quickly mobilize a large workforce (7,570 workers) demonstrates strong disaster preparedness, which is important for risk mitigation.

However, the extended restoration timeline (up to 8 days for some customers) raises questions about grid resilience. Investors should consider whether FirstEnergy is adequately investing in infrastructure hardening to withstand future storms. The company's use of technology for outage reporting and customer communication is a positive risk management strategy, potentially reducing regulatory and reputational risks associated with prolonged outages.

AKRON, Ohio, Aug. 10, 2024 /PRNewswire/ -- Thousands of workers from FirstEnergy (NYSE: FE), along with outside support from 17 states, continue working around the clock restoring power to customers across Greater Cleveland following historic storms on Aug. 6. Each day, service is being restored to large numbers of customers. In addition, significant progress removing trees and other debris is paving the way for the intricate work required to restore service in the hardest hit areas.

More than 627,700 customers across FirstEnergy's footprint in Ohio, Pennsylvania, West Virginia, Maryland and New Jersey lost power due to storms that brought multiple tornadoes and widespread areas of straight-line winds early in the week. Approximately 430,000 of those were in Northeast Ohio.

All of FirstEnergy's Ohio crews were ready to respond when the storm hit Tuesday, as none had been sent south for response to Hurricane Debby. They now have been joined by outside assistance from 17 states – including Ohio, Pennsylvania, Michigan, Indiana, Illinois, New York, Kentucky, West Virginia, Virginia, Tennessee, Alabama, Florida, Iowa, Arkansas, Missouri, Georgia, and Kansas – forming a contingent of approximately 7,570 total workers. Approximately 6,000 of those are working in The Illuminating Company territory, with approximately 1550 in Ohio Edison territory. As work is complete in one area, additional crews will move to assist The Illuminating Company.

Updates by electric company as of 10 a.m.:

• The Illuminating Company: Power has been restored to 198,400 of the approximately 310,000 customers in Ashtabula, Cuyahoga, Geauga, Lake and Lorain counties who lost power due to the storms, and about 112,000 customers remain without service.

While the global Estimated Time of Restoration (ETR) for the vast majority of customers is Wednesday, Aug. 14 at 11:30 p.m., most of the customers who are currently without power will have service restored prior to that time.

As additional information about necessary repairs is understood, more detailed ETRs are being established. Customers can view their current individual ETR for their particular outage by logging into their account at firstenergycorp.com, texting STAT to 544487, or viewing the outage map at firstenergycorp.com/outages.

• Ohio Edison: Approximately 118,100 customers in northern and central Ohio lost power due to the storm, and power has been restored to more than 99% of them. The approximately 600 customers who remain without power are expected to have service restored by 11:00 p.m. tonight.

Customers who are without power can call 1-888-LIGHTSS (1-888-544-4877) or text OUT to 544487 to report their outage or click the "Outages" link on firstenergycorp.com.

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SOURCE FirstEnergy Corp.

FAQ

How many FirstEnergy customers were affected by the August 6 storms?

Over 627,700 FirstEnergy (NYSE: FE) customers across Ohio, Pennsylvania, West Virginia, Maryland, and New Jersey lost power due to the storms on August 6, with approximately 430,000 of those in Northeast Ohio.

When is power expected to be fully restored for FirstEnergy customers affected by the August 6 storms?

The global Estimated Time of Restoration (ETR) for the vast majority of FirstEnergy (NYSE: FE) customers is Wednesday, August 14 at 11:30 p.m., although most customers are expected to have service restored prior to that time.

How many workers are involved in FirstEnergy's power restoration efforts after the August 6 storms?

Approximately 7,570 workers, including FirstEnergy (NYSE: FE) crews and outside assistance from 17 states, are involved in the power restoration efforts following the August 6 storms.

What percentage of Ohio Edison customers have had their power restored after the August 6 storms?

As of August 10, 2024, Ohio Edison, a FirstEnergy (NYSE: FE) company, has restored power to more than 99% of the approximately 118,100 customers who lost power due to the August 6 storms.