CORRECTED: The Illuminating Company Marks Reliability Milestone with Two New Transformers in Lakewood

Rhea-AI Summary

FirstEnergy (NYSE: FE) unit The Illuminating Company is installing two new transformers at the Lakewood Substation, each a roughly $1.85 million investment, to enhance reliability for nearly 11,000 customers in Lakewood and West Cleveland.

Work builds on breaker replacements, upgrades on equipment at 167 poles, smart meter rollouts and proactive tree trimming at nearly 100 locations, which contributed to a 98% drop in December 2025 outage time versus December 2024 and a 25% reduction in overall outage time on local lines.

The first transformer is expected to be energized later this year, with the second on track for early next year, while a mobile substation maintains service during construction.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• Two new transformers, about $1.85 million each, for Lakewood Substation
• Reliability improvements expected for nearly 11,000 Lakewood and West Cleveland customers
• December 2025 outage time down 98% versus December 2024
• Local lines from Lakewood Substation saw 25% lower overall outage time
• Upgrades completed on equipment atop or around 167 utility poles
• Proactive tree trimming at nearly 100 locations to cut outage risk

Negative

• None.

News Market Reaction – FE

+0.96%

+0.96% News Effect

On the day this news was published, FE gained 0.96%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

What This Means

This announcement highlights reliability upgrades for roughly 11,000 customers, including two new tr...

Analysis

This announcement highlights reliability upgrades for roughly 11,000 customers, including two new transformers and prior grid work. Context includes FE’s active shelf registration; key risks remain capital intensity and how regulators treat related cost recovery.

Key Figures

Transformer investment: $1.85 million Transformers added: 2 transformers Affected customers: 11,000 customers +5 more

8 metrics

Transformer investment $1.85 million Approximate cost per new transformer including equipment, transport and installation

Transformers added 2 transformers New units for Lakewood Substation to boost reliability and backup capacity

Affected customers 11,000 customers Customers expected to benefit from improved reliability once both transformers installed

Outage time reduction 98% decrease Drop in total outage time in December 2025 vs. December 2024 in Lakewood area

Local outage reduction 25% decrease Overall outage time reduction on power lines served by Lakewood Substation

Pole equipment work 167 poles Neighborhood equipment upgrades completed since October 2024

Tree trimming sites Nearly 100 locations Proactive vegetation management to reduce tree-related outages

Customer base More than 750,000 customers Customers served by The Illuminating Company across five Ohio counties

Historical Context

5 past events · Latest: Jun 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 18	Leadership changes	Positive	+0.7%	Senior leadership appointments in transformation, ethics, compliance and security.
Jun 17	Leadership changes	Positive	+0.7%	Three senior leaders named to drive operations, safety and technology performance.
Jun 17	Storm readiness update	Positive	+0.7%	Ohio utilities preparedness and grid hardening efforts ahead of severe weather.
Jun 17	Storm investment plan	Positive	-3.3%	Pennsylvania storm preparations and Energize365 grid investment plan details.
Jun 02	Debt exchange offer	Neutral	-0.1%	Extension of exchange offer for multiple JCP&L senior note series.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent FE news has usually seen small positive reactions, with occasional negative moves around financing and large investment updates.

Regulatory & Risk Context

Active S-3 Shelf · $3,000,000,000 · Short Interest: 4.26%

Shelf Active

Short Interest

4.26% of float

0% 15% 30%+

low as of 2026-05-29 Days to cover: 5.14

Reported short positioning appears relatively low, suggesting limited squeeze dynamics and a generally moderate contribution to volatility from short-covering flows.

Active S-3 Shelf Registration 2026-06-08

$3,000,000,000 registered capacity

An effective S-3 shelf allows FE to issue up to $3,000,000,000 of various securities over time, providing flexible financing capacity but also the potential for future dilution or leverage increases.

Key Terms

substation, smart meters, transmission lines, outages

4 terms

substation technical

"delivery of its first new transformer to the Lakewood Substation."

A substation is a fenced facility on the electricity network where equipment changes the voltage, routes power, and protects the grid so electricity can move safely and reliably from generation to homes and businesses. Investors care because substations are critical pieces of infrastructure: they affect service reliability, grid capacity and upgrade costs, and can influence the value and operating risk of utilities, real estate near outages, and companies in the energy supply chain.

smart meters technical

"We've started to install smart meters, a step toward a more modernized electric system"

Smart meters are digital devices that replace traditional utility meters to record and transmit electricity, gas, or water use in near real time. Like a fitness tracker for a home’s energy, they give detailed, time-stamped usage data and can communicate with the utility to enable remote readings and demand management. Investors care because smart meters change revenue and cost dynamics for utilities, enable new services and tariffs, and drive spending on infrastructure, data analytics, and cybersecurity.

transmission lines technical

"operate more than 24,000 miles of transmission lines that connect the Midwest"

High-voltage towers and cables that carry electricity from power plants to cities and substations, like highways that move energy rather than cars. For investors, transmission lines are long-lived, capital-intensive assets whose condition, capacity and regulatory treatment affect utility revenues, reliability and the ability to connect new generation; bottlenecks or upgrades can change costs, permit timelines and future returns.

outages technical

"help reduce outages for customersLAKEWOOD, Ohio, June 25, 2026 --"

Outages are interruptions in a company’s normal operations caused by failures in power, IT systems, manufacturing lines, supply chains, or critical services. They matter to investors because they can halt production or sales, increase costs, damage customer trust, and trigger regulatory scrutiny — like a shop suddenly closing its doors, the business can lose income and face extra expenses until normal service is restored. Frequent or prolonged outages can signal operational weakness and raise the risk of lower returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Equipment supports ongoing reliability improvements to help reduce outages for customers

LAKEWOOD, Ohio, June 25, 2026 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) electric company The Illuminating Co. has reached a key milestone in its efforts to improve electric reliability in Lakewood and West Cleveland with the delivery of its first new transformer to the Lakewood Substation. Transformers are critical pieces of equipment that regulate voltage and help deliver electricity safely and reliably to homes and businesses.

The transformer, weighing about 55 tons (equivalent to nine adult elephants), was transported by truck from Roanoke, VA, to the substation on Athens Avenue – nearly 500 miles and a five-day commute – and lifted into place by crane. The installation marks a visible step forward in a broader plan to strengthen the local electric system and help improve reliability for nearly 11,000 customers.

A second, identical transformer will be delivered to a local Illuminating Co. service center the week of June 29 before being moved to the Lakewood Substation later this summer. Each transformer represents an approximately $1.85 million investment, including equipment, transportation, installation, etc.

"The delivery of these transformers is an important step in building a stronger, more resilient electric system for Lakewood," said Torrence Hinton, President of FirstEnergy Ohio. "Our customers depend on reliable power, and these investments will help us deliver on that commitment and support the community's future needs."

Building Better Reliability for Customers
Once both transformers are installed at the Lakewood Substation, customers can expect improved grid reliability, including the potential for reduced outage durations and faster service restoration times.

The substation will also gain greater back up capacity. This added flexibility gives crews more options to shift load and restore power more efficiently during outages and periods of peak demand.

In addition to improving reliability for customers directly served by the Lakewood Substation, this upgrade may also benefit surrounding communities. With increased capacity and flexibility, Lakewood circuits could potentially be used to help restore service to customers supplied by neighboring substations during outages, further strengthening overall system reliability in the area.

Investments Already Making a Difference
The transformer installations are part of a series of upgrades already improving reliability in the Lakewood area, including:

• Substation Upgrades: All four breakers have been replaced at a substation serving Lakewood, which helps strengthen the equipment that supplies power to Lakewood.
• Neighborhood Equipment Upgrades: Crews have resolved voltage issues in several areas and continue replacing equipment on neighborhood utility poles to improve reliability and reduce the risk of outages. Since October 2024, we've completed work on equipment atop or around 167 poles.
• Smart Meter Installations: We've started to install smart meters, a step toward a more modernized electric system that will enable automated meter readings and enhance our ability to respond to outages faster and more efficiently.
• Proactive Tree Trimming: Crews have pruned trees in nearly 100 locations ahead of schedule to reduce outages caused by falling limbs, a top cause for outages in Ohio.

Recent work has also reduced the length of outages for customers, with the total time customers were without power dropping by 98% in December 2025 compared with December 2024. Local power lines served by the Lakewood Substation have also seen a 25% decrease in overall outage time.

What's Next
Crews will now begin the work to complete transformer installation in the coming weeks. The transformer placed at the substation this week is expected to be energized later this year. The second transformer is on track to be energized by early next year. To maintain service during construction, the mobile substation will continue operating until the new equipment is fully installed and energized.

The Illuminating Company serves more than 750,000 customers across Ashtabula, Cuyahoga, Geauga, Lake and Lorain counties. Follow The Illuminating Company on X @IlluminatingCo and on Facebook at facebook.com/IlluminatingCo.

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 more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

Editor's Note: Images and video of the transformer delivery are available to download from Flickr.

View original content to download multimedia:https://www.prnewswire.com/news-releases/corrected-the-illuminating-company-marks-reliability-milestone-with-two-new-transformers-in-lakewood-302811380.html

SOURCE FirstEnergy Corp.

FAQ

What reliability upgrades did FirstEnergy (NYSE: FE) announce for Lakewood in June 2026?

FirstEnergy announced two new transformers for the Lakewood Substation and multiple grid upgrades to enhance reliability. According to FirstEnergy, these projects support nearly 11,000 customers, expanding backup capacity, improving outage restoration options, and strengthening the wider network serving Lakewood and surrounding communities.

How much is FirstEnergy investing in the new Lakewood transformers for FE shareholders?

Each new Lakewood transformer represents about a $1.85 million investment including equipment, transport, and installation. According to FirstEnergy, the two units expand substation capacity, increase operational flexibility during peak demand, and support faster restoration, potentially improving long-term service quality for residential and business customers.

When will the new Lakewood Substation transformers for FirstEnergy (FE) be energized?

The first transformer is expected to be energized later this year, with the second by early next year. According to FirstEnergy, a mobile substation will maintain service during construction until both units are fully installed, providing continuity while reliability upgrades are completed.

How have outage durations changed in Lakewood after FirstEnergy’s recent investments?

Outage durations have declined significantly following recent upgrades in the Lakewood area. According to FirstEnergy, total time customers were without power fell 98% in December 2025 versus December 2024, while local lines served by the Lakewood Substation saw a 25% decrease in overall outage time.

What other grid improvements accompany the new transformers for FirstEnergy customers in Lakewood?

The transformer project is part of broader Lakewood grid upgrades, including breaker replacements and pole-top equipment work. According to FirstEnergy, crews have improved equipment on 167 poles, begun smart meter installations, and conducted proactive tree trimming at nearly 100 locations to reduce outage risk.

How many customers does The Illuminating Company serve compared with the Lakewood project scope?

The Illuminating Company serves more than 750,000 customers across several northeast Ohio counties. According to FirstEnergy, the Lakewood transformer and related upgrades directly target nearly 11,000 customers, while added capacity may also help neighboring substations restore service during regional outages.