Category: FE

FE – FirstEnergy: Q2 Earnings Insights

Shares of FirstEnergy (NYSE:FE) were flat in after-market trading after the company reported Q2 results.

Quarterly Results

Earnings per share were up 3.51% over the past year to $0.59, which were in line with the estimate of $0.59.

Revenue of $2,600,000,000 rose by 3.09% year over year, which missed the estimate of $2,640,000,000.

Looking Ahead

Earnings guidance hasn’t been issued by the company for now.

FirstEnergy hasn’t issued any revenue guidance for the time being.

Price Action

Company’s 52-week high was at $41.65

Company’s 52-week low was at $22.85

Price action over last quarter: Up 6.27%

Company Profile

FirstEnergy is one of the largest investor-owned utilities in the United States with 10 distribution utilities serving 6 million customers in six mid-Atlantic and Midwestern states. FirstEnergy also owns and operates one of the nation’s largest transmission systems with more than 24,500 miles of lines.

FE – FirstEnergy Corp. Declares Unchanged Common Stock Dividend

AKRON, Ohio, July 20, 2021 /PRNewswire/ — The Board of Directors of FirstEnergy Corp. (NYSE: FE) today declared an unchanged quarterly dividend of 39 cents per share of outstanding common stock. The dividend will be payable September 1, 2021, to shareholders of record at the close of business on August 6, 2021.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 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 on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.

Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management’s intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “forecast,” “target,” “will,” “intend,” “believe,” “project,” “estimate,” “plan” and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the effectiveness of our ongoing discussions with the U.S. Attorney’s Office of the S.D. Ohio to resolve its investigation with respect to us; the results of the internal investigation and evaluation of our controls framework and remediation of our material weakness in internal control over financial reporting; the risks and uncertainties associated with government investigations regarding Ohio House Bill 6 and related matters including potential adverse impacts on federal or state regulatory matters including, but not limited to, matters relating to rates; the potential of non-compliance with debt covenants in our credit facilities due to matters associated with the government investigations regarding Ohio House Bill 6 and related matters; the risks and uncertainties associated with litigation, arbitration, mediation and similar proceedings; legislative and regulatory developments, including, but not limited to, matters related to rates, compliance and enforcement activity; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, maintaining financial flexibility, overcoming current uncertainties and challenges associated with the ongoing government investigations, executing our transmission and distribution investment plans, greenhouse gas reduction goals, controlling costs, improving our credit metrics, strengthening our balance sheet and growing earnings; economic and weather conditions affecting future operating results, such as a recession, significant weather events and other natural disasters, and associated regulatory events or actions in response to such conditions; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions; the extent and duration of COVID-19 and the impacts to our business, operations and financial condition resulting from the outbreak of COVID-19 including, but not limited to, disruption of businesses in our territories, volatile capital and credit markets, legislative and regulatory actions, including the vaccine’s efficacy and the effectiveness of its distribution; the effectiveness of our pandemic and business continuity plans, the precautionary measures we are taking on behalf of our customers, contractors and employees, our customers’ ability to make their utility payment and the potential for supply-chain disruptions; actions that may be taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; changes in assumptions regarding economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers’ demand for power, including, but not limited to, the impact of climate change or energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions affecting us and/or our major industrial and commercial customers or others with which we do business; the risks associated with cyber-attacks and other disruptions to our information technology system, which may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; changes to environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts and other trust funds, or causing us to make contributions sooner, or in amounts that are larger, than currently anticipated; labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, or adverse tax audit results or rulings; and the risks and other factors discussed from time to time in our SEC filings. Dividends declared from time to time on FirstEnergy Corp.’s common stock during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy Corp.’s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy Corp.’s filings with the SEC, including but not limited to the most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy Corp.’s business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy Corp. expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.

SOURCE FirstEnergy Corp.

Related Links

http://www.firstenergycorp.com

FE – FirstEnergy's (FE) Arm Replaces Sodium Lights With Smart LED

FirstEnergy Corp.’s (FE Free Report) unit Penelec converted more than 2,300 high-pressure sodium streetlights into smart LED streetlamps in downtown Erie and along the Bayfront during the period between November 2020 and June 2021. This efficient technology will save money and enhance public safety.

The move is part of Erie’s Smart City Project, which aims to transform the city and drive economic growth. The photocells of the new street lights are well-equipped with a Wi-Fi card that allows conveyance of real-time data to a control center via a wireless communications network. It will help Penelec monitor the working of streetlights for which it had to earlier rely on its customers or employees. Also, the standard photocells know when to switch on or off the streetlights depending on the time of the day.

Need for Such Technology

The electric utilities industry on the whole needs huge amounts of investments to strengthen and upgrade its existing infrastructure. It is replacing old transmission and distribution lines, undergrounding distribution lines, adopting technological upgrade to increase the resilience of infrastructure and providing continuous power even during hurricanes, storms and other natural calamities.

Being such a capital-intensive industry, the players constantly need to worry about expanding their generation capacity to meet the needs of a growing customer base. The recent conversion move will help the utility serve more customers with its existing generation capacity as the smart LED consumes lesser electricity than the traditional sodium light.

Company’s CAPEX & Renewable Goals

FirstEnergy’s strategic investments help it serve its six million customers efficiently. In 2021, it expects to spend up to $2.9 billion while in 2022, it estimates to invest up to $2.9-$3.2 billion. Also, it provided the CAPEX guidance for 2023 in the range of $2.7-$3.1 billion.

The company keeps inspecting and maintaining its transmission system on an annual basis. This ensures its transmission lines to operate properly during the summer season and efficiently transfer high-voltage power from generation units to the designated locations. It also trims trees along the transmission lines to lower the possibility of tree-related outages.

Moreover, in 2015, the utility had set a target of reducing at least 90% of its CO2 emissions from the 2005 levels within 2045. In November 2020, it updated its aim to become 100% carbon neutral by 2050 with a mid-term goal of 30% cut in greenhouse gases within the company’s direct operational control by 2030 from the 2019 baseline. Also, plans are afoot to electrify 30% of vehicle fleet by 2030 and the rest 70% by 2050. The company also implemented a corporate waste reduction and recycling initiative in its service territories.

Peer Moves

Along with FirstEnergy, other utilities like Xcel Energy (XEL Free Report) , DTE Energy (DTE Free Report) and Avista Corporation (AVA Free Report) are also adopting measures to utilize cleaner energy sources to generate electricity. These companies have plans in place to supply 100% clean energy to their customers.

Zacks Rank & Price Performance

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, shares of the utility have gained 8.2% against the industry’s 1.2% decline.

Three Months Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

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FE – FirstEnergy's (FE) Investments & Clean Energy Goals Bode Well

FirstEnergy Corporation’s (FE Free Report) expanding regulated base and improving transmission lines are expected to boost its earnings. Also, the company’s efforts to reduce emission levels are likely to be beneficial in the future.

The Zacks Consensus Estimate for 2021 earnings is pegged at $2.53 per share, indicating growth of 5.86% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $11.27 billion, suggesting 4.49% growth from the prior-year reported number. In the past three months, shares of this presently Zacks Rank #3 (Hold) company have gained 9.3%, outperforming the industry’s rise of 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Three Months Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

What’s Driving the Stock?

FirstEnergy’s efforts to extend its regulated generation mix lent consistency to its long-term earnings. The utility’s transmission and distribution operations are spread across 65,000 square miles in six states and its rate structure provides stability during an economic crisis. Its investment in strengthening the transmission and distribution lines will enable it to serve its six million customers more efficiently. The utility anticipates investment of up to $2.9 billion in reinforcing its transmission and distribution network during 2021.

Moreover, the company reaffirmed its long-term CAGR projection of 6-8% for operating earnings during the 2018-2021 forecast period and expects the same to be 5-7% for the 2022-2023 time frame.

The pandemic reduced demand from the commercial and industrial space but owing to the revival of economic activities, it might improve in the ongoing year. Also, the company generates nearly 65% of its distribution revenues from its residential customers and demand from such clients is steadily increasing on the back of extended stay-at-home directives. This is likely to strengthen its prospects in this difficult phase.

FirstEnergy is focused on lowering its emission levels and undertook initiatives to that end. In November 2020, it updated its target to become net carbon neutral by 2050. Other electric utilities like Alliant Energy Corporation (LNT Free Report) , CMS Energy Corporation (CMS Free Report) and Pinnacle West Capital (PNW Free Report) are also making sustained efforts to expand their renewable portfolio alongside trimming toxic emissions.

Woes

However, FirstEnergy still possesses coal-fired generating plants that are required to comply with the federal, state and local environmental statutes, thereby elevating its costs. Thus, a likely escalation in the compliance costs might affect the company’s profitability. The risks related to unplanned outages and an unexpected delay in completing the ongoing capital project remain headwinds.

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FE – Met-Ed's 2021 Tree Trimming Program to Enhance Service Reliability

READING, Pa., April 7, 2021 /PRNewswire/ — Met-Ed, a subsidiary of FirstEnergy Corp. (NYSE: FE), continues to conduct tree trimming work in communities across its service area in Pennsylvania as part of its ongoing efforts to help enhance electric service reliability.

Maintaining proper clearances around electrical equipment can help reduce the frequency and duration of tree-related power outages, especially those associated with severe weather such as spring and summer thunderstorms.

Since the beginning of the year, tree contractors have trimmed along about 650 miles of distribution and transmission lines in the Met-Ed area as part of the company’s $28 million vegetation management program for 2020. Met-Ed’s program remains on schedule to complete an additional 2,550 miles of work by year end.

The work includes inspecting vegetation near the lines to ensure trees are pruned in a manner that helps preserve the health of the tree, while also maintaining safety near electric facilities. Trees that present a danger or are diseased also may be removed.

“Trimming trees around our power lines is critical in our mission to provide reliable electric service for our customers,” said Linda Moss, regional president, Met-Ed. “The work is paying off. In 2020, Met-Ed experienced 11 percent fewer tree-related outages than in 2019.”  

Met-Ed is scheduled in 2021 to trim trees along transmission lines and distribution circuits in the following counties and areas:

  • AdamsGettysburg, Hanover, Mount Joy Township, Straban Township
  • BerksAdamstown, Bethel Township, Bernville, Boyertown, Frystown, Leesport, Maxatawny Township, Reading, Topton
  • BucksBridgeton Township, Ottsville, Tinicum Township
  • Dauphin – Grantsville
  • LebanonLebanon, Rexmont, Cornwall, Fredericksburg, Bethel Township, Swatara Township, Myerstown, Jackson Township
  • Lehigh – Weisenberg Township
  • MonroeMarshalls Creek, Shawnee, Stroudsburg, Water Gap
  • Montgomery –   Hanover Township, New Hanover
  • Northampton – Belfast, Plainfield Township, Clearfield, Bushkill Township, Easton, Upper Mount Bethel Township
  • York – West Manchester Township, Spring Garden Township, York, Menges Mills, Windsor Township  

As part of its notification process, Met-Ed works with municipalities to inform them of tree trimming schedules. In addition, customers living in areas along company rights-of-way are notified prior to vegetation management work being done. 

The vegetation management work is conducted by certified forestry experts under the company’s direction, including: Aerial Solutions, Asplundh Tree Expert Company, Davey Tree Expert Company, Lewis Tree Service, Nelson Tree Service Inc., Rotor Blade, Treesmiths and York Tree Service Inc.

Met-Ed serves approximately 570,000 customers within 3,300 square miles of eastern and southeastern Pennsylvania. Follow Met-Ed on Twitter @Met Ed and on Facebook at www.facebook.com/MetEdElectric.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 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 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Visit FirstEnergy online at www.firstenergycorp.com and follow FirstEnergy on Twitter @FirstEnergyCorp.

Editor’s Note:  Photos of workers using bucket trucks to trim trees near FirstEnergy power lines are available for download on Flickr. A video explaining FirstEnergy’s vegetation management techniques can also be found on YouTube.

SOURCE FirstEnergy Corp.

Related Links

http://www.firstenergycorp.com

FE – Penelec's 2021 Tree Trimming to Enhance Reliability

ERIE, Pa., April 7, 2021 /PRNewswire/ — Penelec, a subsidiary of FirstEnergy Corp. (NYSE: FE), continues to conduct tree trimming work in communities across its Pennsylvania service areas as part of its ongoing efforts to help enhance electric service reliability. 

Maintaining proper clearances around electrical equipment can help reduce the frequency and duration of tree-related power outages, especially those associated with severe weather such as spring and summer thunderstorms.

Since the beginning of the year, tree contractors have trimmed along about 1,000 miles of distribution and transmission lines in the Penelec area as part of the company’s $39.4 million vegetation management program for 2021. Penelec’s program remains on track to complete an additional 3,200 miles of work by year end.

The program includes inspecting vegetation near the lines to ensure trees are pruned in a manner that helps preserve the health of the tree, while also maintaining safety near electric facilities. Trees that present a danger or are diseased also may be removed.

“Penelec is committed to enhancing customer service reliability, and our vegetation management program is one of the most important things we do every year to help maintain our electric system and restore power quickly after storms,” said Nick Austin, regional president, Penelec. “Our tree trimming continues to make a positive difference in keeping the lights on for our customers. In 2020, the number of tree-caused outages fell 3% compared to 2019.”

The company has also completed its five-year program to proactively remove more than 200,000 dead and drying ash trees impacted by the Emerald Ash Borer along 18,000 miles of power line rights-of-way.

Penelec is scheduled in 2021 to trim trees along transmission lines and distribution circuits in the following counties and areas:

  • BedfordBedford
  • BlairAltoona, Roaring Spring
  • BradfordColumbia Cross Roads, Grover, New Albany, Wyalusing
  • CambriaFallentimber, Johnstown
  • Clarion CountyKnox
  • ClearfieldBeccaria, Dubois, Madera
  • ColumbiaBenton
  • CrawfordCochranton, Meadville, Titusville
  • CumberlandShippensburg
  • ErieCorry, Edinboro, Erie, Fairview Township, Lake City, North East, Union City, Wesleyville
  • ForestMarienville
  • Franklin – Fannetsburg, Roxbury, Shippensburg
  • HuntingdonAlexandria, Huntingdon, Petersburg
  • IndianaBlairsville, Glen Campbell, Indiana
  • JeffersonBrockway, Brookville, Punxsutawney, Summerville
  • McKeanLewis Run, Port Allegany
  • PotterGaleton, Shinglehouse
  • SomersetBerlin, Hooversville, Rockwood, Somerset
  • SullivanEagles Mere
  • SusquehannaNew Milford, Susquehanna, Thompson
  • TiogaMansfield, Morris Run
  • VenangoOil City, Utica
  • WarrenWarren
  • WayneStarrucca
  • Wyoming – Falls

As part of its notification process, Penelec works with municipalities to inform them of tree trimming schedules. In addition, customers living in areas along company rights-of-way are notified prior to vegetation management work being done. 

The vegetation management work is conducted by qualified line clearance arborists, including Asplundh Tree Expert Company, Davey Tree Expert Company, Penn Line Service, Hazlett Tree Service, Townsend Tree Service, Lewis Tree Service, and Treesmiths.

Penelec serves approximately 585,000 customers within 17,600 square miles of northern and central Pennsylvania. Follow Penelec on Twitter @Penelec and on Facebook at www.facebook.com/PenelecElectric.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 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 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Visit FirstEnergy online at www.firstenergycorp.com and follow FirstEnergy on Twitter @FirstEnergyCorp.

Editor’s Note:  Photos of workers using bucket trucks to trim trees near FirstEnergy power lines are available for download on Flickr. A video explaining FirstEnergy’s vegetation management techniques can also be found on YouTube.

SOURCE FirstEnergy Corp.

Related Links

http://www.firstenergycorp.com

FE – Ohio Edison Invests $22 Million in Tree-Trimming Work to Help Minimize Impact of Severe Weather

AKRON, Ohio, April 7, 2021 /PRNewswire/ — Ohio Edison, a subsidiary of FirstEnergy Corp. (NYSE: FE), is conducting tree trimming and other vegetation management work in communities across its 34-county service area in Ohio to help enhance service reliability for customers. This year’s $22 million tree-trimming program will help keep power flowing to customers around the clock by preventing tree-related outages, such as those that can occur during the spring and summer storm season.

On the ground, contractors have trimmed trees along nearly 1,200 miles of electric lines across the Ohio Edison service area. The company’s program remains on track to complete an additional 3,850 miles of tree-trimming work by the end of the year. As part of this process, helicopter aerial saws will be used in April to trim trees along hard-to-access transmission corridors in northeast Ohio.

Tree trimming is done on a four-year cycle. The program includes inspecting vegetation near the lines to ensure the trees are pruned in a manner that helps preserve the health of the tree while also maintaining safety near electric facilities. Trees that present a danger or are diseased may be removed.

“Proactive tree trimming is some of the most important and effective work we do every year to maintain our power system and minimize the impact of damage caused by severe weather,” said Edward Shuttleworth, regional president of Ohio Edison and Penn Power. “In order to keep electricity flowing safely and reliably during all types of weather conditions, we have a responsibility to protect the lines that deliver it to homes and businesses across our region.”

Tree trimming is being conducted in the following counties and communities throughout the year:

  • AshlandAshland, City of Ashland, Hayesville, Mifflin, Nankin, Polk and Savannah
  • ClarkNew Carlisle and Springfield
  • ColumbianaGuilford Lake, Lisbon, Petersburg and Salem
  • DelawareCity of Delaware, City of Dublin, Millcreek and Shawnee Hills
  • ErieBerlin Heights, Huron and Sandusky
  • GeaugaHiram
  • HuronMonroeville and Norwalk
  • LorainElyria, Grafton, Lorain, North Ridgeville and South Amherst
  • Madison – London
  • MahoningAustintown, Boardman, Campbell, Canfield, Ellsworth, Mineral Ridge, New Middletown, North Jackson, North Lima, Poland, Sebring, Struthers and Youngstown
  • Marion – Kirkpatrick, Marion and Prospect
  • MedinaMedina, Seville, Valley City and Wadsworth
  • MorrowAshley, Cardington and Mount Gilead
  • OttawaPort Clinton
  • PortageAuburn Township, Aurora, Brimfield Township, Franklin Township, Geauga Township, Kent, Ravenna, Ravenna Township, Rootstown Township, Streetsboro and Suffield Township
  • RichlandCrestline, Galion, Johnsville, Mansfield, Olivesburg, Pavonia, Shenandoah and Steam Corners
  • StarkAlliance, Hartville, Lexington, Marlboro Township, Minerva, North Canton, Paris and Perry Township
  • SummitBarberton, Chapel Hill, Clinton, Copley, East Akron, Elizabeth Park Valley, Firestone Park, Goodyear Heights, Green, Kenmore, Lakemore, Macedonia, Nordonia, Northfield, Northfield Township, Northfield Center Township, Norton, Reminderville Township, Sagamore Hills, South Akron, Tallmadge, Twinsburg, Twinsburg Township and Walnut Hills
  • TrumbullAndover, Brookfield, Fowler, Hartford, Hubbard, Kinsman, Leavittsburg, Liberty, Parkman, Southington, Vienna, Warren and Willamsfield
  • UnionMagnetic Springs and Richwood
  • WayneDoylestown

As part of its notification process, Ohio Edison works with municipalities to inform them of tree trimming schedules. In addition, customers living in areas along company rights-of-way also are notified prior to vegetation management work being done. 

The vegetation management work is conducted by certified forestry experts under the company’s direction, including Asplundh Tree Expert Company, Davey Tree Expert Company, Nelson Tree Service Inc., Penn Line Service, Townsend Tree Service and Wright Tree Service.

In the air, helicopters equipped with aerial saws will trim trees and maintain clearances along hard-to-access transmission and distribution corridors throughout Ohio Edison’s service area. The aerial saw is typically deployed along transmission and distribution lines in areas that may be environmentally sensitive or inaccessible to bucket trucks and other vehicles. This method typically covers more area in a day than a ground crew might complete in a week. The saw also eliminates the risk of injury to workers using bucket trucks or climbing trees to cut limbs near high voltage equipment.

Ohio Edison has contracted with Aerial Solutions, which owns and operates the helicopter and saw, to perform the work. 

Ohio Edison serves more than 1 million customers across 34 Ohio counties. Follow Ohio Edison on Twitter @OhioEdison and on Facebook at www.facebook.com/OhioEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 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 on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.

Editor’s Note: Photos of utility personnel trimming trees near FirstEnergy power lines are available for download on Flickr. A video explaining FirstEnergy’s vegetation management techniques can also be found on YouTube.

SOURCE FirstEnergy Corp.

Related Links

http://www.firstenergycorp.com

FE – Mon Power 2021 Tree Trimming Program Underway

FAIRMONT, W.Va., April 7, 2021 /PRNewswire/ — Mon Power, a subsidiary of FirstEnergy Corp. (NYSE: FE), has begun its 2021 tree trimming program and will clear vegetation around nearly 5,700 miles of power lines this year as part of its ongoing efforts to enhance service reliability for West Virginia customers.

Maintaining proper clearances and removing dead or diseased trees around electrical equipment can help reduce the frequency and duration of power outages, especially those associated with severe weather. Clearing incompatible vegetation under power lines also results in easier access for company personnel to inspect and maintain lines and make repairs faster if an outage occurs. In Mon Power’s 34-county service territory, total customer outage minutes, including during major storm events, have dropped by more than 40% since the first full year of its existing tree-trimming program in 2015.

“Our tree-trimming program is critical to identifying potential hazards across our service area and is one of the most effective ways we can minimize service interruptions for our customers,” said Jim Myers, president of West Virginia operations for FirstEnergy.

Mon Power operates on a four-year trimming cycle and will spend more than $70 million on its vegetation management program this year, which includes 480 miles of overhead transmission power lines. During the trimming process, vegetation is inspected, and trees are pruned in a manner that helps preserve the health of the tree while also maintaining safety near electric facilities. In some cases, trees that are diseased or pose a threat to power lines or equipment may be removed. Mon Power’s program includes about $2.5 million to proactively remove deteriorated ash trees damaged by the Emerald Ash Borer along larger distribution lines and lines near electric substations.

The vegetation management work is conducted by certified forestry experts under the company’s direction, including Asplundh Tree Expert, GF Tree Service, Jaflo, Penn Line, The Energy Group, Townsend and UAL.

Mon Power works with municipalities to inform them of tree trimming schedules, and customers living in areas along company rights-of-way are notified prior to vegetation management work being done. Mon Power will be conducting tree trimming work in the following counties and communities in 2021:

  • Barbour: Arden, Belington, Junior, Kasson, Moatsville, Nestorville, Tacy
  • Braxton: Burnsville, Morrison Ridge
  • Brooke: Beech Bottom, Colliers, Follansbee, Wellsburg
  • Calhoun: Arnoldsburg, Five Forks, Grantsville, Millstone,
  • Clay: Ivydale, Wallback
  • Gilmer: Glenville, Normantown, Sandfork
  • Greenbrier: Alderson, Alta, Alvon, Caldwell, Fairlea, Frankford, Lewisburg, Maxwelton, Organ Cave, Renick, Ronceverte, White Sulphur, Tuckahoe
  • Hancock: Chester, Newell, Weirton
  • Harrison: Anmoore, Bridgeport, Gypsy, Lumberport, Shinnston, West Milford,
  • Lewis: Jane Lew, Weston
  • Marion: Fairmont, Grant Town, Winfield
  • Monongalia: Cheat Lake, Granville, Maidsville, Westover
  • Monroe: Alderson
  • Nicholas: Richwood, Summersville
  • Pendleton: Circleville, Riverton, Seneca Rocks, Upper Tract   
  • Pocahontas: Bartow, Dunmore, Green Bank
  • Preston: Arthurdale, Gladesville, Hazelton, Kingwood, Masontown, Reedsville, Rowlesburg
  • Randolph: Harman, Helvetia, Mill Creek, Pickens, Valley Bend, Valley Head
  • Ritchie: Cairo, Ellenboro, Smithville
  • Summers: Forest Hill, Hinton, Lowell, Pence Springs 
  • Upshur: Buckhannon
  • Webster: Bolair, Cowen, Webster Springs
  • Wetzel: New Martinsville, Paden City, Proctor, Wileyville 
  • Wirt: Elizabeth, Palestine
  • Wood: Cedar Grove, Davisville, Kanawha, Mineral Wells, North Hills, Parkersburg, Pettyville

Mon Power serves about 385,000 customers in 34 West Virginia counties. Follow Mon Power at www.mon-power.com, on Twitter @MonPowerWV, and on Facebook at www.facebook.com/MonPowerWV.

FirstEnergy is dedicated to safety, reliability and operational excellence. Its 10 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 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on Twitter @FirstEnergyCorp.

Editor’s Note: Photos of utility personnel trimming trees near FirstEnergy power lines are available for download on Flickr. A video explaining FirstEnergy’s vegetation management techniques can also be found on YouTube.                 

SOURCE FirstEnergy Corp.

Related Links

http://www.firstenergycorp.com

FE – FirstEnergy's (FE) Arm to Invest in Facilities and Cut Outages

FirstEnergy Corp. (FE Free Report) recently announced that its subsidiary, Toledo Edison, is undertaking efforts to upgrade infrastructure and install technology. The company intends to modernize its electric system in northwest Ohio through 2022 and reduce power outages. These initiatives are part of initial three-year phase of the utility’s grid modernization plan, which included installation of new, automated equipment and technology in substations and along power lines.

The recent work includes installation of 60 new, automated equipment and technology in substations and along power lines to maintain safe and constant voltage levels for more than 40,000 customers. More than 80 capacitor banks are being installed, which will ensure reliable power distribution to each customer.

Workers have commenced upgrading electrical equipment in two Lucas County substations and modernizing the power lines. These investments will successfully reduce the frequency, scope and length of outages.

Need for Maintenance

FirstEnergy is working consistently on maintaining its infrastructure. Every year, the company employs tree contractors who work round the year to ensure proper vegetation management in the company’s electric lines. During 2018-2023 period, the utility anticipates investing $17.6 billion in strengthening transmission and distribution network as well as fortifying infrastructure.

With the reopening of business activities, commercial and industrial demand is slowly returning to pre-COVID levels. Also, improvement in residential demand is likely to continue. Hence, to cater to this likely hike in demand, the company needs to undergo some renovation. Effective maintenance will ensure uninterrupted power supply to the company’s customers that it serves in different states and increase the reliability of its service.

Utilities Focus on Infrastructure

To provide 24X7 supply of electricity to consumers, utilities are investing heavily in strengthening infrastructure. They are replacing old transmission and distribution lines, undergrounding distribution lines, adopting technological upgrade to increase the resilience of infrastructure for withstanding the impact of hurricanes, storms and other natural calamities.

Utilities like Xcel Energy (XEL Free Report) increased its investment plans to $24.3 billion from $23.5 billion in the 2021-2025 time period to reflect new investment worth $750 million in wind project. NextEra Energy (NEE Free Report) plans to invest $50-$55 billion in different projects during the 2019-2022 time period to modernize and strengthen its existing infrastructure. DTE Energy (DTE Free Report) currently expects to make capital investments of $14 billion over the 2021-2025 period, which include $5 billion for capital replacements and other projects, $7 billion for distribution infrastructure and another $2 billion for new generation.

Zacks Rank & Price Performance

In the past three months, shares of this currently Zacks Rank #4 (Sell) company have gained 15.9% compared with the industry’s rise of 0.1%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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FE – FirstEnergy (FE) Up 1.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for FirstEnergy (FE Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

FirstEnergy’s Q4 Earnings & Revenues Lag Estimates

FirstEnergy delivered fourth-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%. Also, the bottom line declined 41.8% from the year-ago quarter’s figure.

On a GAAP basis, the company delivered earnings of 45 cents per share against the loss of 20 cents incurred in the prior-year quarter.

Total Revenues

FirstEnergy generated revenues of $2.5 billion in the fourth quarter, which missed the Zacks Consensus Estimate of $2.8 billion by 10.7%. Also, the top line moved down 7.4% from $2.7 billion in the year-ago quarter.

Highlights of the Release

Residential sales increased marginally on a year-over-year basis. Commercial deliveries dipped 5.4% while industrial sales fell 5.1% year over year. Total distribution deliveries slipped 3.1% from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.

Total operating expenses in the quarter under review came in at $2,143 million, up 4.1% from $2,058 million in the prior-year quarter.

In the fourth quarter, operating income was $394 million, down 35.9% from $615 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $1,801 million as of Dec 31, 2020 compared with $679 million on Dec 31, 2019.

Long-term debt and other long-term obligations as of Dec 31, 2020 were $22,131 million, up from $19,618 million on Dec 31, 2019.

Net cash provided by operating activities in 2020 was $1,423 million compared with $2,467 million in 2019.

Guidance

Management expected the company’s 2021 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate pegged at $2.61. Also, the company expects first-quarter 2021 EPS in the range of 62-72 cents with the current Zacks Consensus Estimate pegged at 69 cents. It anticipates investing $3 billion in the ongoing year.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, FirstEnergy has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, FirstEnergy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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