Northeast Ohio Electric Grid Stronger and More Resilient Following Power Line Enhancements

Rhea-AI Summary

FirstEnergy Corp. subsidiary, American Transmission Systems, Inc. (ATSI), upgrades 16 miles of power lines in Ohio to enhance reliability for 5,000 customers. The $15.5 million project strengthens the regional transmission system, reduces overloads, and improves service reliability. The upgrade includes new wires with increased capacity, new components, and insulators. The project is part of the Energize365 program, aiming to create a smarter grid with planned investments of $26 billion between 2024 and 2028.

Insights

Energy Industry Analyst

FirstEnergy's infrastructure upgrade, involving the enhancement of 16 miles of high-voltage power lines, has direct implications for the energy sector. By increasing the capacity of these lines, the company is addressing the critical need for grid reliability and resilience. This initiative is part of a broader trend where utilities are investing in grid modernization to support an evolving energy landscape that includes the integration of renewable energy sources and the increasing demand from electric vehicles.

The investment in new components and the use of helicopters for installation highlight operational efficiencies that could lead to cost savings over time. However, the capital expenditure of $15.5 million for this project and the broader $26 billion investment for the Energize365 program, will impact FirstEnergy's financials. Investors should monitor how these investments affect the company's debt profile and return on investment, particularly as utilities often face regulatory constraints on cost recovery.

Environmental and Sustainability Expert

From an environmental and sustainability perspective, the upgrades to FirstEnergy's transmission lines are a step towards a more sustainable energy future. A more resilient grid is essential in reducing the risk of power outages, which can have significant environmental and economic impacts. The ability to integrate cleaner energy sources is important for reducing greenhouse gas emissions and aligning with global climate goals.

FirstEnergy's investment in grid infrastructure could also be seen as a move to future-proof its business against increasing regulatory pressures for utilities to adopt sustainable practices. However, the environmental impact of the construction and maintenance of new infrastructure, such as the creation of access roads and the potential disruption to local ecosystems, should not be overlooked.

Financial Analyst

Analyzing the financial implications of the upgrade, the project's cost needs to be weighed against the anticipated benefits. Enhanced reliability can lead to fewer outages, which in turn can result in lower operational costs and potentially higher customer satisfaction. For investors, the key question is whether the $15.5 million investment will translate into improved financial performance for FirstEnergy in the form of increased revenue from higher demand or cost savings from improved efficiency.

Long-term, the $26 billion earmarked for the Energize365 program represents a significant commitment to infrastructure. Investors should consider the company's strategy for funding these investments and the expected timeline for returns. The impact on the company's stock will largely depend on FirstEnergy's ability to manage these investments efficiently and the regulatory environment's support for cost recovery through rate adjustments.

Project will enhance reliability for 5,000 FirstEnergy customers in Lake and Geauga counties

AKRON, Ohio, March 28, 2024 /PRNewswire/ -- American Transmission Systems, Inc. (ATSI), a subsidiary of FirstEnergy Corp. (NYSE: FE), has upgraded 16 miles of two high-voltage power lines in Ohio's Lake and Geauga counties, stringing new wires with increased capacity for carrying electricity. The project is expected to strengthen the regional transmission system and enhance service reliability for nearly 5,000 customers of The Illuminating Company, a FirstEnergy company.

The two 138-kilovolt power lines share 119 transmission towers and connect two area substations, running southwest 16 miles from Leroy Township through Hambden, Chardon, Munson and Chester townships. The new wires help reduce the risk of overloads on the lines by allowing them to carry increased power flow in the event of unplanned service interruptions on other transmission lines.

Carl Bridenbaugh, FirstEnergy's Vice President of Transmission: "This line upgrade will reinforce our transmission system and help provide us with the flexibility we need to continue delivering reliable power to customers in Northeast Ohio."

As part of the approximately $15.5 million project, ATSI also installed new components and insulators along the route to support the wires. Helicopter crews performed most of the equipment upgrades along the section. Performing the work with helicopters is faster and more efficient than using ground crews, which requires the creation of access roads for large trucks and equipment.

The project was identified in conjunction with PJM, the electric grid operator for FirstEnergy's service territory, as part of its reliability planning analysis. The 240-foot-wide transmission corridor hosts multiple power lines, and last year, ATSI upgraded an 8-mile section of two separate 138-kilovolt lines between Leroy Township and Chardon Township. A second phase of that upgrade project is planned for the fall of 2024.

ATSI provides transmission services in Ohio and in the western portion of Pennsylvania and owns or maintains more than 8,100 miles of transmission lines, substations and other facilities.

The project 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.

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 more than six million 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, formerly known as Twitter, @FirstEnergyCorp.

 

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SOURCE FirstEnergy Corp.

FAQ

What company upgraded the power lines in Ohio?

FirstEnergy Corp. subsidiary, American Transmission Systems, Inc. (ATSI), upgraded the power lines in Ohio.

How many miles of power lines were upgraded in Ohio?

ATSI upgraded 16 miles of power lines in Ohio.

What is the purpose of the upgrade project in Ohio?

The upgrade project aims to enhance reliability for 5,000 customers, strengthen the regional transmission system, and reduce overloads on the power lines.

What is the total investment for the project in Ohio?

The total investment for the project in Ohio is approximately $15.5 million.

What program does the project in Ohio belong to?

The project in Ohio is part of the Energize365 program.