PPL Corporation
's (
PPL
) subsidiary PPL Electric Utilities has completed its "smart grid"
pilot project. As a part of this project, the company installed
sophisticated electric delivery system technology, which will
enable it to provide reliable and uninterrupted electric supply to
its 60,000 customers in Dauphin and Cumberland counties around
Harrisburg in Pennsylvania during summers.
PPL Corporation invested $40 million to finish this three-year
project. The company received funding, worth $19 million, from the
U.S. Department of Energy ("DOE") under its utility grants program
to support attempts to improve U.S. power grids.
PPL Corporation received technological support from several
organizations and educational institutions including GE Energy,
Alcatel-Lucent, S.A.
(
ALU
),
Lockheed Martin Corporation
(
LMT
) and Drexel University for this project.
PPL Corporation's newly-installed "smart grid" systems will
enable the company to save customer money and energy through
operational efficiency. The system will promptly detect issues that
cause power outages and redirect power around the problem zone to
restore supply. The optimum use of energy will also help to lower
carbon dioxide emissions.
Utility providers like PPL Corporation invest regularly for
improvement of energy transmission and distribution operations and
installation of modern technology. A few days ago, the company
completed the construction of a new transmission substation and
associated power lines to strengthen the regional power grid and
boost reliability for customers in Dauphin County and neighboring
areas. The total cost of the project amounted to $28 million.
We expect PPL Corporation to file for a distribution rate hike
with the Pennsylvania Public Utility Commission ("PPUC"). As
evident from the company's strategy so far, it appeals for a rate
hike after infrastructure and distribution investments. The company
filed for a rate hike in March 2012, subsequent to its investments
in Susquehanna-Roseland Power, Moore Township and Appenzell
projects.
During the first quarter earnings release, PPL Corporation
announced its full year 2012 earnings guidance in the range of
$2.15 - $2.45 per share. As per the Zacks Consensus Estimate, the
company's second quarter and full year 2012 earnings are expected
to be 40 cents and $2.31 per share, respectively.
PPL Corporation currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating.
Allentown, Pennsylvania-based PPL Corporation generates and
delivers electricity and natural gas to nearly 10.3 million
customers in the United States and United Kingdom.
ALCATEL ADS (ALU): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
Report
PPL CORP (PPL): Free Stock Analysis Report
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