) business wing, Cleveland Electric Illuminating Company plans to
invest $152.0 million in 2013 for the purpose of upgrading its
electrical systems to ensure greater reliability of service to
its customers in northeast Ohio.
The modernization plan includes rebuilding substations,
constructing distribution circuits, examining and replacing
utility poles, continuing work on the transmission lines and
speeding up the pace of existing vegetation management
Under the plan, FirstEnergy will reconstitute a major portion
of the Northfield substation for which it will shell out $10.0
million. A further $10.0 million will be spent on evaluating and
replacing the distribution and sub-transmission poles in Ohio.
The pole examining process commenced in Jan 2013 and the
replacement activity will be carried on throughout the year.
In addition, the company will be engaged in the installation
of new sub-transmission circuits, which is a part of a program
aimed for managing future load growth. FirstEnergy is looking to
complete the 138 Kilovolt (kV) transmission line and a substation
in Geauga County. These initiatives are aimed at handling load
and increasing reliability for which a total of $22.0 million has
been set aside.
Other plans include capital spending of $13.0 million for
FirstEnergy's vegetation management works like trimming trees to
prevent infrastructural damages from storm and a $4.0 million for
the repositioning of switching equipments from the Wickliffe
substation to another station of Cleveland Electric.
A sizeable $20.0 million will be allocated for the company's
Energy Smart Grid venture in Geauga County. This includes
placement of additional smart meters and creating technologies to
restore outages in remote areas.
Earlier, FirstEnergy's business division, Jersey Central Power
& Light announced spending $200.0 million in 2013 for the
development and modernization of its existing infrastructures in
New Jersey as well as to fund the ongoing restoration works in
areas affected by Hurricane Sandy.
Although the company is likely to incur higher costs for these
programs, the mix of infrastructure and midstream asset
development initiatives will support its broad growth objectives.
Moreover, significant rise in customer count and the
approval of its Electric Security Plan will further boost
FirstEnergy's returns in the near term.
However, the recent outage at the company's Perry Nuclear
Plant could have an adverse impact on its operations. The company
currently carries a Zacks Rank #3 (Hold).
Other utility stocks well worth a look are Zacks Rank #1
Otter Tail Corporation
Brookfield Infrastructures Partners L.P.
Pike Electric Corporation
Headquartered in Akron, OH, FirstEnergy engages in the
generation, transmission, and distribution of electricity in the
United States. At present it has a market capitalization of
BROOKFIELD INFR (BIP): Free Stock Analysis
FIRSTENERGY CP (FE): Free Stock Analysis
OTTER TAIL CORP (OTTR): Free Stock Analysis
PIKE ELECTRIC (PIKE): Free Stock Analysis
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