Exelon Corporation 's ( EXC ) subsidiary Commonwealth Edison Company (ComEd) announced the completion of digital improvement of its first substation called Wallace, based in the South Side of Chicago. This substation modernization activity comes under the company's 10-year Grid Modernization Program to follow the Energy Infrastructure Modernization Act (EIMA).
Per this upgrade program, ComEd has installed a state-of-the-art technology to decrease occurrence and length of power outages. The company has fitted an Intelligent Substation Dashboard that offers information on the total condition of each part of the substation and converses directly with the employees, if something goes wrong. The digital technology enables ComEd to recognize fault locations and take instant actions.
As a result of this infrastructure and technology upgrade program, both ComEd as well as its customers will be benefited in the future. The implementation of modern expertise enables the company to provide uninterrupted services to its 28,000 strong customer base, strengthen system competence and reduce malfunctions. We believe these factors will subsequently improve reliability, consumer confidence and public safety.
The EIMA was introduced by Illinois General Assembly in 2011 to invest for developing and upgrading the state's electric infrastructure. This rule also allows the utility providers the right to recover their actual investments in the future.
The program will help ComEd to provide uninterrupted electricity service with less outages and faster restoration. It would also offer customers more information as well as generate more than $2.3 billion in customer savings. Further, this project will create 2,000 full-time jobs in the future.
Exelon's intention to upgrade its electricity distribution assets is evident from its capital spending program. In 2013, the company plans to invest $5.5 billion with $1.4 billion allocated for the improvement of distribution infrastructure.
Chicago, IL.-based Exelon Corporation currently has a Zacks Rank #3 (Hold). Other stocks from the industry that are presently performing better include Brookfield Infrastructure Partners L.P. ( BIP ), Otter Tail Corporation ( OTTR ) and Pike Electric Corporation ( PIKE ). All the three stocks carry a Zacks Rank #1 (Strong Buy).
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