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FirstEnergy Pennsylvania Receives Approval for Infrastructure Improvement Plans

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FirstEnergy Pennsylvania (FE PA) has secured approval from the Pennsylvania Public Utility Commission for phase three of its Long-Term Infrastructure Improvement Plans (LTIIP III). The plan involves a $1.42 billion capital investment over the next five years to enhance service reliability for over two million Pennsylvania customers.

The initiative builds on more than $1 billion invested during 2016-2024, which has already reduced customer service interruptions by 14% since 2019. LTIIP III will focus on grid modernization and system resiliency, including installing protective devices, converting power lines, updating underground networks, and replacing aging equipment. The investment will be distributed across service areas: Penelec ($538M), Met-Ed ($382M), West Penn Power ($368M), and Penn Power ($133M).

FirstEnergy Pennsylvania (FE PA) ha ottenuto l'approvazione dalla Commissione Pubblica dei Servizi dell Pennsylvania per la fase tre dei suoi Piani di Miglioramento Infrastrutturale a Lungo Termine (LTIIP III). Il piano prevede un investimento di capitale di 1,42 miliardi di dollari nei prossimi cinque anni per migliorare l'affidabilità del servizio per oltre due milioni di clienti in Pennsylvania.

Questa iniziativa si basa su oltre 1 miliardo di dollari investiti tra il 2016 e il 2024, che hanno già ridotto le interruzioni del servizio clienti del 14% dal 2019. LTIIP III si concentrerà sulla modernizzazione della rete e sulla resilienza del sistema, inclusa l'installazione di dispositivi di protezione, la conversione delle linee elettriche, l'aggiornamento delle reti sotterranee e la sostituzione di attrezzature obsolete. L'investimento sarà distribuito nelle aree di servizio: Penelec (538 milioni di dollari), Met-Ed (382 milioni di dollari), West Penn Power (368 milioni di dollari) e Penn Power (133 milioni di dollari).

FirstEnergy Pennsylvania (FE PA) ha obtenido la aprobación de la Comisión de Servicios Públicos de Pensilvania para la fase tres de sus Planes de Mejora de Infraestructura a Largo Plazo (LTIIP III). El plan incluye una inversión de capital de 1.42 mil millones de dólares durante los próximos cinco años para mejorar la confiabilidad del servicio para más de dos millones de clientes en Pensilvania.

La iniciativa se basa en más de 1 mil millones de dólares invertidos entre 2016 y 2024, que ya han reducido las interrupciones del servicio al cliente en un 14% desde 2019. LTIIP III se centrará en la modernización de la red y la resiliencia del sistema, que incluye la instalación de dispositivos de protección, la conversión de líneas eléctricas, la actualización de redes subterráneas y la sustitución de equipos obsoletos. La inversión se distribuirá en las áreas de servicio: Penelec (538 millones de dólares), Met-Ed (382 millones de dólares), West Penn Power (368 millones de dólares) y Penn Power (133 millones de dólares).

퍼스트에너지 펜실베이니아(FE PA)는 펜실베이니아 공공유틸리티 위원회로부터 장기 인프라 개선 계획(LTIIP III) 3단계에 대한 승인을 받았습니다. 이 계획은 향후 5년 동안 14억 2천만 달러의 자본 투자를 통해 200만 명 이상의 펜실베이니아 고객을 위한 서비스 신뢰성을 향상시키는 것을 목표로 하고 있습니다.

이 이니셔티브는 2016년부터 2024년까지 10억 달러 이상을 투자한 결과로, 2019년 이후 고객 서비스 중단을 14% 줄였습니다. LTIIP III는 전력망 현대화와 시스템 회복력을 중심으로 구축되며, 보호 장치 설치, 전선 변환, 지하 네트워크 업데이트 및 노후 장비 교체 등을 포함합니다. 투자는 서비스 지역에 따라 분배됩니다: Penelec(5억 3,800만 달러), Met-Ed(3억 8,200만 달러), West Penn Power(3억 6,800만 달러), Penn Power(1억 3,300만 달러).

FirstEnergy Pennsylvania (FE PA) a obtenu l'approbation de la Commission des services publics de Pennsylvanie pour la phase trois de ses Plans d'Amélioration d'Infrastructure à Long Terme (LTIIP III). Le plan implique un investissement en capital de 1,42 milliard de dollars au cours des cinq prochaines années pour améliorer la fiabilité du service pour plus de deux millions de clients en Pennsylvanie.

Cette initiative s'appuie sur plus d'un milliard de dollars investis entre 2016 et 2024, ayant déjà réduit les interruptions de service aux clients de 14% depuis 2019. LTIIP III se concentrera sur la modernisation du réseau et la résilience du système, notamment l'installation de dispositifs de protection, la conversion de lignes électriques, la mise à jour de réseaux souterrains et le remplacement d'équipements vieillissants. L'investissement sera réparti sur les zones de service : Penelec (538 millions de dollars), Met-Ed (382 millions de dollars), West Penn Power (368 millions de dollars) et Penn Power (133 millions de dollars).

FirstEnergy Pennsylvania (FE PA) hat die Genehmigung der Pennsylvania Public Utility Commission für die dritte Phase seiner langfristigen Infrastrukturverbesserungspläne (LTIIP III) erhalten. Der Plan umfasst eine Kapitalinvestition von 1,42 Milliarden US-Dollar in den nächsten fünf Jahren, um die Servicezuverlässigkeit für über zwei Millionen Kunden in Pennsylvania zu verbessern.

Diese Initiative baut auf mehr als 1 Milliarde US-Dollar, die zwischen 2016 und 2024 investiert wurden, und bereits zu einer Reduzierung der Kundenunterbrechungen um 14% seit 2019 geführt haben. LTIIP III wird sich auf die Modernisierung des Stromnetzes und die Systemresilienz konzentrieren, einschließlich der Installation von Schutzvorrichtungen, der Umwandlung von Stromleitungen, der Aktualisierung von unterirdischen Netzwerken und dem Austausch alter Geräte. Die Investition wird auf die Versorgungsgebiete verteilt: Penelec (538 Millionen US-Dollar), Met-Ed (382 Millionen US-Dollar), West Penn Power (368 Millionen US-Dollar) und Penn Power (133 Millionen US-Dollar).

Positive
  • Secured regulatory approval for $1.42B infrastructure improvement plan
  • Previous LTIIP investments reduced service interruptions by 14%
  • No immediate bill impact for customers in 2025
  • Part of larger $26B grid evolution program (2024-2028)
Negative
  • None.

Insights

The $1.42 billion LTIIP III approval represents a substantial infrastructure modernization initiative that will significantly enhance FirstEnergy's operational capabilities in Pennsylvania. The 14% reduction in service interruptions from previous LTIIP investments demonstrates the program's effectiveness. The strategic allocation across Met-Ed ($382 million), Penelec ($538 million), West Penn Power ($368 million) and Penn Power ($133 million) is well-balanced relative to their customer bases.

This investment is part of FirstEnergy's broader $26 billion Energize365 program, positioning the company for future grid demands including EV integration and clean energy transition. The regulatory approval provides clear revenue visibility and operational stability through 2029. The absence of immediate bill impacts in 2025 due to inclusion in existing rate structures helps mitigate potential customer pushback and regulatory risks.

The focus on automation technology, voltage standardization and system redundancy should drive meaningful improvements in SAIDI (System Average Interruption Duration Index) and SAIFI (System Average Interruption Frequency Index) metrics, key performance indicators for utility operators.

This regulatory approval strengthens FirstEnergy's investment thesis and cash flow predictability. The $1.42 billion capital deployment over five years represents approximately 6.3% of FirstEnergy's current market cap, providing a substantial regulated growth opportunity. The program's integration into the rate base ensures steady returns on invested capital, typically around 9-10% for utility companies in Pennsylvania.

The timing aligns with the broader utility sector's need to modernize aging infrastructure while preparing for increased electrification. FirstEnergy's ability to secure this approval without immediate rate impacts demonstrates skilled regulatory management and strategic planning. The authorized investments should support earnings growth while maintaining the company's investment-grade credit metrics.

Work to enhance smart grid across Pennsylvania will continue through 2029

GREENSBURG, Pa., Dec. 19, 2024 /PRNewswire/ -- FirstEnergy Pennsylvania (FE PA), a subsidiary of FirstEnergy Corp. (NYSE: FE) doing business as Met-Ed, Penn Power, Penelec and West Penn Power, has received approval from the Pennsylvania Public Utility Commission (PaPUC) to implement phase three of its Long-Term Infrastructure Improvement Plans (LTIIP III) to help ensure continued electric service reliability for more than two million Pennsylvania customers.

The plans entail an additional $1.42 billion in capital investment over the next five years across FE PA's service areas with projects designed to reduce the frequency of service interruptions for customers and shorten their duration when they occur. LTIIP III builds on more than $1 billion in investments made during the first two rounds of LTIIP that spanned 2016-2024. Since 2019, the frequency of interruptions a customer experiences over a year has dropped by 14% in areas where LTIIP work has been completed.

John Hawkins, FirstEnergy's President of Pennsylvania: "Over the past nine years, our enhancements to the power grid and proactive tree trimming along rights-of-way have yielded positive results. Our tailored improvement plans for each service area align seamlessly with our annual upgrades to the distribution network, helping us deliver the safe and reliable service our customers want and deserve. LTIIP III will further elevate these efforts by rebuilding overhead power lines and integrating more automated technology into our power lines and substations."

View photos of some previous LTIIP projects on Flickr

LTIIP III will focus on improving customer service reliability through grid modernization and system resiliency.

Grid modernization projects include:

  • Installing protective devices such as automated reclosers and fuses to power lines and building tie lines between power line sections to isolate damage and quickly restore electric service to customers from unaffected parts of the system.
  • Converting lower-voltage power lines to standard voltages to better regulate voltage and provide operational flexibility to reduce the duration of outages.
  • Updating underground networks with new conduits, cable, transformers, vaults, manholes and switches.
  • Replacing aging substation equipment with modern breakers and electronic relays that offer improved monitoring and operational capabilities.

System resiliency focuses on strengthening the grid with projects such as:

  • Replacing aging poles and overhead wire.
  • Replacing underground cable nearing the end of its useful life.
  • Selectively placing distribution equipment underground where feasible to enhance reliability.
  • Building new power lines to provide more sources to supply electricity to customers, enhancing operational flexibility.

These targeted distribution projects complement each utility's annual tree trimming and vegetation management efforts, which work in tandem to help minimize service interruptions.

Expected 2025-2029 LTIIP III investments for each service area are:

  • Penelec – $538 million
  • Met-Ed - $382 million
  • West Penn Power – $368 million
  • Penn Power - $133 million

Customers will see no bill impact from LTIIP III in 2025 because first-year program costs are included in FE PA's distribution rate review approved in November by the PUC. LTIIP was authorized by Pennsylvania Act 11, which was approved in 2012 and established a process to encourage electric, natural gas, water and sewer utilities in Pennsylvania to accelerate investments in aging infrastructure and create economic benefits.

FE PA anticipates filing additional LTIIPs in future years and is committed to a sound, cost-effective approach that will result in consistent reliability performance.

LTIIP III is part of Energize365, a multi-year grid evolution program focused on transmission and distribution investments that will deliver the power FirstEnergy's customers depend on today while also meeting the challenges of tomorrow. With planned investments of $26 billion between 2024 and 2028, the program will create a smarter, more secure and resilient grid that will meet and exceed reliability targets and accommodate electric vehicles, the electrification of homes and businesses and clean energy sources.

Met-Ed serves approximately 592,000 customers within 3,300 square miles of eastern and southeastern Pennsylvania. Follow Met-Ed on X @Met Ed and on Facebook at facebook.com/MetEdElectric.

Penelec serves approximately 597,000 customers within 17,600 square miles of northern and central Pennsylvania and western New York. Follow Penelec on X @Penelec and on Facebook at facebook.com/PenelecElectric.

Penn Power serves approximately 173,000 customers in all or parts of Allegheny, Beaver, Butler, Crawford, Lawrence and Mercer counties in western Pennsylvania. Follow Penn Power on X @Penn_Power, on Facebook at facebook.com/PennPower, and online at pennpower.com.

West Penn Power serves approximately 746,000 customers in 24 counties within central and southwestern Pennsylvania. Follow West Penn on X @W_Penn_Power and on Facebook at facebook.com/WestPennPower.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/firstenergy-pennsylvania-receives-approval-for-infrastructure-improvement-plans-302336645.html

SOURCE FirstEnergy Corp.

FAQ

How much will FirstEnergy (FE) invest in LTIIP III infrastructure improvements?

FirstEnergy will invest $1.42 billion in capital improvements over the next five years (2025-2029) across its Pennsylvania service areas.

What impact has FirstEnergy's (FE) previous LTIIP investments shown?

Since 2019, areas where LTIIP work was completed have seen a 14% reduction in the frequency of customer service interruptions.

How will FirstEnergy's (FE) LTIIP III costs affect customer bills in 2025?

Customers will see no bill impact from LTIIP III in 2025 as first-year program costs are included in FE PA's distribution rate review approved in November.

How is FirstEnergy's (FE) $1.42B LTIIP III investment distributed across service areas?

The investment is distributed as follows: Penelec ($538M), Met-Ed ($382M), West Penn Power ($368M), and Penn Power ($133M).

What are the main focus areas of FirstEnergy's (FE) LTIIP III program?

LTIIP III focuses on grid modernization and system resiliency, including installing protective devices, converting power lines, updating underground networks, and replacing aging equipment.

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