New Electric Substation to Boost Power Supply in Fast Growing Lebanon County

Rhea-AI Summary

FirstEnergy's subsidiary Met-Ed is constructing a new electrical substation in South Annville Township, Pennsylvania, to support growing industrial development. The project, started in spring 2024 and expected to complete by early 2025, will enhance service reliability for over 2,100 customers in Annville, South Annville Township, and Palmyra.

The substation will power new warehouse facilities, including the 1.1-million-square-foot Eagle Point Logistics Center and a planned 1 million-square-foot facility at Clear Springs Logistics Park. The project includes installation of a 69-kV-to-13.2-kV transformer and new distribution lines. This development is part of FirstEnergy's Energize365 program, which plans $26 billion in investments between 2024-2028 to create a smarter, more secure grid.

Positive

• New substation will support major industrial development and increase service reliability for 2,100+ customers
• Project is part of $26 billion grid modernization investment program (2024-2028)
• Strategic location serving growing logistics hub near major interstate corridors
• Addition of backup power feed enhances system reliability

Negative

• None.

Insights

Infrastructure Analyst

This strategic infrastructure expansion represents a significant development for FirstEnergy, particularly in serving the booming logistics sector along Pennsylvania's key transportation corridors. The new substation will support two massive warehouse facilities totaling over 2.1 million square feet, with capacity for future expansion. The project is part of FirstEnergy's ambitious $26 billion grid evolution program (2024-2028), demonstrating substantial capital commitment to grid modernization.

The investment strengthens FirstEnergy's competitive position in a high-growth area while diversifying revenue streams through industrial customer expansion. The backup power feed capability enhances grid reliability, potentially reducing maintenance costs and improving customer satisfaction. This project aligns with the broader trend of utilities upgrading infrastructure to support e-commerce and logistics sector growth, which typically generates stable, long-term revenue streams from high-volume power consumers.

Utility Sector Analyst

The strategic significance of this project extends beyond its immediate infrastructure impact. This expansion positions FirstEnergy to capture growing industrial demand in a prime logistics corridor, potentially driving meaningful revenue growth. The substation's design, incorporating future expansion capabilities and enhanced grid flexibility, demonstrates forward-thinking capital allocation that should deliver long-term shareholder value.

The project's integration into the broader $26 billion Energize365 program signals FirstEnergy's commitment to modernizing its grid infrastructure while preparing for future electrification trends. This proactive approach to infrastructure development, particularly in high-growth industrial zones, typically translates to stable returns and improved regulatory relationships, benefiting both ratepayers and shareholders.

READING, Pa., Dec. 9, 2024 /PRNewswire/ -- FirstEnergy Pennsylvania Electric Company (FE PA), a FirstEnergy Corp. (NYSE: FE) subsidiary doing business as Met-Ed in southeastern Pennsylvania, is building a new substation off bustling Route 422 in South Annville Township that will supply electricity to new, massive warehouse facilities in a growing industrial complex.

New distribution lines will link the substation to the local electric network, enhancing service reliability for more than 2,100 Met-Ed customers in Annville, South Annville Township and Palmyra where electrical load growth is on the rise. When completed, the project will offer a backup power feed that will help keep the lights on for nearby customers if wires or equipment on their regular line are damaged or need to be taken out of service.

John Hawkins, FirstEnergy's President, Pennsylvania: "Our new substation will provide the critical infrastructure necessary to energize an enormous shipping hub in the busy motor freight corridor encompassing Interstates 78 and 81 and the Pennsylvania Turnpike. It will also provide operational flexibility for our local electric grid to better serve our residential and business customers in these fast-growing communities."

Construction of the substation started in spring 2024 and is expected to be completed by early 2025.

Met-Ed substation crews have installed steel structures, circuit breakers, electrical cables and other substation equipment. Delivery of the 69-kilovolt (kV)-to-13.2-kV transformer – the heart of the substation – is expected in December. The transformer will measure 13.5-feet tall by 20-feet wide and weigh more than 100,000 pounds.

Two short power lines will exit the substation, with plans to expand those lines and build a third power line from the substation in the future. One line will serve the 1.1-million-square-foot Eagle Point Logistics Center next to the substation. The second line will supply a new 1 million-square-foot facility directly across Killinger Road from the substation, the first of three warehouses planned for the Clear Springs Logistics Park. That line will run north to Route 422 and connect with an existing power line to provide additional operational flexibility when work is completed.

In parallel with the substation work, contractors are constructing a new 69-kV transmission line to supply the new substation with power from an existing transmission line. The line will be attached to 16 steel poles standing 45 to 70 feet tall.                          

The work 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 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.

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. Visit FirstEnergy online at firstenergycorp.com and follow FirstEnergy on X @FirstEnergyCorp.

Editor's Note: Construction photos of the new substation and power line are available for download on Flickr.

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-electric-substation-to-boost-power-supply-in-fast-growing-lebanon-county-302326444.html

SOURCE FirstEnergy Corp.

FAQ

When will FirstEnergy (FE) complete the new South Annville Township substation?

FirstEnergy expects to complete the new substation in South Annville Township by early 2025, with construction having started in spring 2024.

How many customers will FirstEnergy's (FE) new Lebanon County substation serve?

The new substation will enhance service reliability for more than 2,100 Met-Ed customers in Annville, South Annville Township and Palmyra areas.

What is the capacity of the transformer being installed at FirstEnergy's (FE) new Lebanon County substation?

The substation will feature a 69-kilovolt (kV)-to-13.2-kV transformer, measuring 13.5-feet tall by 20-feet wide and weighing over 100,000 pounds.

How much is FirstEnergy (FE) investing in its Energize365 program?

FirstEnergy plans to invest $26 billion between 2024 and 2028 in its Energize365 grid evolution program.