Work Underway to Enhance Electric Service Reliability for Residents and Businesses in Morgan County Area

Rhea-AI Summary

FirstEnergy Corp. (NYSE: FE) subsidiary Potomac Edison has begun construction on a new substation in Morgan County, West Virginia, aimed at enhancing reliability for 1,800 customers in the area. The $4 million project, part of the Energize365 program, will replace an existing substation with a more accessible and reliable facility. Key features include:

- Fed by a more reliable 138-kV power line
- New automated reclosing devices to limit outages
- Smart technology for faster fault location and restoration
- Expected completion in 2025
- Serving 1,600 customers in Great Cacapon and 200 in Little Orleans, Maryland

This initiative is part of FirstEnergy's broader $26 billion investment plan for 2024-2028, focusing on grid modernization and accommodating future energy needs.

Positive

• Construction of new substation to enhance reliability for 1,800 customers
• $4 million investment in infrastructure improvement
• Implementation of advanced technology for faster outage detection and restoration
• Part of a larger $26 billion investment plan (2024-2028) for grid modernization

Negative

• None.

Insights

Utility Infrastructure Analyst

The $4 million investment in a new substation by Potomac Edison, a FirstEnergy subsidiary, represents a strategic upgrade to enhance service reliability for 1,800 customers in West Virginia and Maryland. This project is part of a larger $26 billion Energize365 program, signaling FirstEnergy's commitment to grid modernization.

Key benefits include:

• Improved accessibility for maintenance and repairs
• Advanced automated reclosing devices for faster outage recovery
• Enhanced isolation of outages to minimize affected customers

While the $4 million project cost is relatively small for a utility of FirstEnergy's size, it demonstrates a focus on rural infrastructure improvement, which could positively impact customer satisfaction and regulatory relationships. The 2025 completion timeline suggests a measured approach to capital deployment, balancing immediate needs with long-term planning.

Financial Analyst

This infrastructure upgrade, while localized, aligns with FirstEnergy's (NYSE: FE) broader capital expenditure strategy. The $26 billion Energize365 program over 2024-2028 represents a significant commitment to grid modernization, potentially driving future revenue growth through improved reliability and capacity for increased electrification.

Investors should note:

• Potential for regulatory asset base growth, supporting future rate cases
• Improved operational efficiency, possibly leading to cost savings in the long term
• Enhanced ability to meet evolving customer needs, supporting customer retention and potential market expansion

While the immediate financial impact is minimal, this project exemplifies FirstEnergy's focus on sustainable, long-term growth in its regulated utility business model.

Project to reduce outages for 1,800 Potomac Edison customers in West Virginia and Maryland

WILLIAMSPORT, Md., Aug. 22, 2024 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) subsidiary Potomac Edison has started construction on a new substation in Morgan County, West Virginia, that is expected to enhance reliability for 1,800 area customers. Fed by a more reliable power line, the facility will feature new technology and equipment that will also help reduce the number and duration of outages.

Located in Great Cacapon, the new substation will replace an existing substation nearby that is fed by a six-mile, 34.5-kilovolt (kV) power line that runs along rocky and mountainous terrain. The line is challenging to access for repairs when severe weather causes damage. Located on a 20-acre parcel owned by Potomac Edison, the new substation will be fed by an existing 138-kV power line that is easier to access by field personnel and less vulnerable to service interruptions, particularly during severe weather.

Hundreds of homes and businesses in the area will benefit from the installation of new automated reclosing devices in the substation that will help limit the frequency, duration and scope of service interruptions.

These electrical devices work like a circuit breaker in a home that shuts off power when trouble occurs, with the added benefit of automatically reenergizing a substation or power line within seconds for certain types of outages to keep power safely flowing to customers. This technology is safer and more efficient because it often allows electric company personnel to automatically restore service to customers rather than sending a crew to investigate, which is especially beneficial in rural areas like Morgan County.

If the device senses a more serious issue, like a fallen tree on electrical equipment, it will isolate the outage to that area and limit the total number of affected customers. The device's smart technology will quickly pinpoint the location of the fault and help utility personnel better understand the cause of the outage to help speed restoration.

Don McGettigan, FirstEnergy's Acting President, Maryland: "This new infrastructure will make a real difference for customers in the Great Cacapon area and will help ensure we can deliver the safe, reliable power they depend on."

The new substation is expected to be completed and operational in 2025, serving approximately 1,600 customers in the Great Cacapon area and 200 in Little Orleans, Maryland. The existing substation and connecting power line will ultimately be removed after customers are migrated to the new substation.

The $4 million 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.

Potomac Edison serves about 285,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland and about 151,000 customers in the Eastern Panhandle of West Virginia. Follow Potomac Edison at potomacedison.com, on X, formerly known as Twitter, @PotomacEdison, and on Facebook at facebook.com/PotomacEdison.

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 purpose of Potomac Edison's new substation project in Morgan County, WV?

The new substation project aims to enhance electric service reliability for 1,800 customers in the Morgan County area, reducing the number and duration of outages.

How much is FirstEnergy (FE) investing in the new Morgan County substation project?

FirstEnergy (FE) is investing $4 million in the new substation project in Morgan County, West Virginia.

When is the new Potomac Edison substation in Morgan County expected to be operational?

The new Potomac Edison substation in Morgan County is expected to be completed and operational in 2025.

How many customers will benefit from the new FirstEnergy (FE) substation in Morgan County?

The new FirstEnergy (FE) substation will serve approximately 1,600 customers in the Great Cacapon area and 200 in Little Orleans, Maryland, totaling 1,800 customers.