Substation Expansion to Enhance Electric Service Reliability in Northwest Ohio

Rhea-AI Summary

FirstEnergy Corp. (NYSE: FE) subsidiary American Transmission Systems, Inc. (ATSI) is expanding and upgrading a high-voltage substation in Sylvania Township, Lucas County, Ohio. The $15 million project aims to enhance electric service reliability for over 20,000 Toledo Edison customers in northwestern Ohio. Key aspects include:

- Expanding the substation from 17,000 to 49,900 square feet
- Implementing a new setup with separate sections to isolate issues and minimize outages
- Adding enhanced equipment for proactive issue identification
- Expected completion in early 2025

This project is part of FirstEnergy's Energize365 program, a multi-year grid evolution initiative with planned investments of $26 billion between 2024 and 2028. The program aims to create a smarter, more secure grid to meet future challenges, including electric vehicle adoption and clean energy integration.

Positive

• Expansion of substation from 17,000 to 49,900 square feet to enhance service reliability
• $15 million investment in infrastructure upgrade
• Project benefits over 20,000 Toledo Edison customers
• New setup allows for isolation of issues and minimization of outages
• Part of $26 billion Energize365 program (2024-2028) for grid modernization

Negative

• None.

Insights

Utility Infrastructure Analyst

The $15 million substation expansion project by FirstEnergy's subsidiary ATSI is a significant infrastructure upgrade that will enhance service reliability for over 20,000 Toledo Edison customers. This investment is part of the larger $26 billion Energize365 program, which aims to modernize the grid and prepare for future energy demands.

Key points to consider:

• The expanded substation will increase from 17,000 to 49,900 square feet, allowing for improved isolation of issues and more flexible power routing.
• New automated equipment and technology will enable proactive identification and addressing of potential problems.
• The project aligns with the trend towards grid modernization, supporting the integration of electric vehicles and clean energy sources.

While this investment demonstrates FirstEnergy's commitment to improving infrastructure, the $15 million cost is relatively small compared to the company's $25.5 billion market cap. The project's completion in early 2025 suggests a gradual, positive impact on service quality and potentially reduced maintenance costs in the long term.

Financial Analyst

This infrastructure investment, while positive for customer satisfaction and long-term reliability, is unlikely to have an immediate significant impact on FirstEnergy's financials. The $15 million project cost is minimal relative to the company's $26 billion five-year investment plan.

However, the Energize365 program as a whole represents a substantial capital expenditure that could impact the company's financial position:

• The $26 billion investment over 2024-2028 averages to $5.2 billion annually, which may affect cash flows and potentially increase debt levels.
• These investments are likely to be factored into the rate base, potentially leading to higher regulated returns in the future.
• Improved reliability and capacity for new energy sources could drive customer retention and growth, supporting long-term revenue stability.

Investors should monitor how efficiently FirstEnergy deploys this capital and whether it translates into improved financial performance and regulatory outcomes over time.

New substation design to benefit more than 20,000 Toledo Edison customers

AKRON, Ohio, Oct. 1, 2024 /PRNewswire/ -- Work is underway by a subsidiary of FirstEnergy Corp. (NYSE: FE) to expand and upgrade a high-voltage substation in Sylvania Township, Lucas County. The project will include installing new automated equipment and technology to enhance electric service reliability for more than 20,000 Toledo Edison customers in northwestern Ohio.

American Transmission Systems, Inc. (ATSI) will expand the substation from 17,000 square feet to 49,900 square feet on company-owned property and change how it is set up to help avoid or minimize future power outages. The current substation has one main electrical connection for all the power lines that extend from the facility. The new setup will have separate sections to help isolate issues and prevent service interruptions by allowing the power flow to be rerouted when equipment in the facility needs maintenance.

Mark Mroczynski, FirstEnergy's President of Transmission: "This important upgrade to our substation in Lucas County will strengthen the transmission system and help minimize the risk of outages for thousands of Toledo Edison customers while providing us with the flexibility we need to maintain or repair our equipment in the future without disrupting customers."

As part of the approximately $15 million project, ATSI is adding enhanced equipment that will help personnel proactively identify potential issues and address them in a timely manner.

Expected to be complete and in service in early 2025, 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 @FirstEnergyCorp.

 

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SOURCE FirstEnergy Corp.

FAQ

What is the cost of FirstEnergy's (FE) substation expansion project in Sylvania Township, Ohio?

The substation expansion project in Sylvania Township, Ohio, by FirstEnergy's subsidiary ATSI, is estimated to cost approximately $15 million.

How many Toledo Edison customers will benefit from FirstEnergy's (FE) substation upgrade in Lucas County?

The substation upgrade in Lucas County will enhance electric service reliability for more than 20,000 Toledo Edison customers in northwestern Ohio.

When is FirstEnergy's (FE) substation expansion project in Sylvania Township expected to be completed?

The substation expansion project in Sylvania Township is expected to be complete and in service in early 2025.

What is the size increase of FirstEnergy's (FE) substation in Sylvania Township after the expansion?

The substation in Sylvania Township will be expanded from 17,000 square feet to 49,900 square feet on company-owned property.