Electric Grid Enhancements to Boost Service Reliability in Morris County

Rhea-AI Summary

JCP&L, a FirstEnergy Corp. (NYSE: FE) subsidiary, has initiated construction on infrastructure upgrades to enhance electric reliability in three Morris County communities. The project, part of a $95 million New Jersey Reliability Improvement Project, will benefit over 2,100 customers and is scheduled for completion in October 2025.

The upgrades include installing stronger wires and poles, upgrading fuses, adding reclosers for power rerouting, implementing TripSaver devices for automatic line restoration, and enhancing vegetation management. The project consists of two phases, with the first phase set for completion in three years and the second phase targeted for completion by 2028.

Positive

• $95 million investment in infrastructure improvement
• Service reliability enhancement for 2,100 customers
• Implementation of advanced technology (TripSaver devices) for automatic power restoration
• Strategic upgrades targeting areas with frequent outages

Negative

• None.

Insights

Utility Infrastructure Analyst

The $95 million infrastructure upgrade project by JCP&L represents a significant investment in grid modernization and reliability improvement. The comprehensive approach includes critical upgrades like stronger transmission equipment, advanced automation devices and strategic vegetation management. The TripSaver technology implementation is particularly noteworthy as it can significantly reduce operational costs and outage durations by automating fault detection and restoration. With these improvements targeting high-priority lines affecting over 2,100 customers in Morris County, the project should meaningfully reduce outage frequencies and durations. The phased implementation approach, extending through 2028, allows for systematic improvements while managing capital expenditure effectively. This investment aligns with regulatory requirements and should positively impact FirstEnergy's rate base, potentially supporting future earnings growth.

Financial Analyst

This capital investment project is strategically important for FirstEnergy's regulated utility business model. The $95 million first-phase investment, already approved by regulators, will be added to the rate base, generating guaranteed returns over time. The project's regulatory pre-approval through the rate review settlement significantly reduces execution risk and ensures cost recovery. The two-phase approach through 2028 provides clear visibility on capital deployment and growth. For a utility with $23.7 billion market cap, while this specific project isn't massive in scale, it represents the type of regulated investment that drives steady earnings growth. The focus on reliability improvements in high-outage areas should also help maintain positive regulatory relationships, important for future rate case outcomes.

JCP&L upgrades are part of a larger $95 million project

HOLMDEL, N.J., Dec. 5, 2024 /PRNewswire/ -- Jersey Central Power & Light (JCP&L), a subsidiary of FirstEnergy Corp. (NYSE: FE), has started construction on infrastructure upgrades designed to enhance electric reliability for customers in three Morris County communities. The work is scheduled to be completed in October 2025 as part of JCP&L's New Jersey Reliability Improvement Project, an element of the company's rate review settlement approved by the New Jersey Board of Public Utilities in February.

Equipment enhancements will take place along more than five miles of power lines in Chester, Washington and Roxbury townships. More than 2,100 JCP&L customers are expected to benefit from this work.

Doug Mokoid, FirstEnergy's President, New Jersey: "The upgrades we're making under the New Jersey Reliability Improvement Project are part of our commitment to providing safe, reliable electric service for all our customers. These improvements, in particular, target areas where customers have experienced some of the most frequent outages in recent years."

The upgrades include:

• Replacing existing infrastructure with thicker, stronger wires and poles that can safely carry more electricity and provide more resiliency in storms.
• Upgrading fuses and installing additional devices and reclosers that allow power to be rerouted to adjacent lines when an outage occurs, minimizing the number of impacted customers.
• Installing TripSaver devices, which sense temporary abnormalities along power lines, such as a tree branch bouncing off lines, and automatically reenergize the line after the condition has passed without having to send a crew to investigate.
• Additional tree trimming and vegetation management along power lines.

The New Jersey Reliability Improvement Project is a two-phase effort to enhance reliability for customers on high-priority lines selected based on historical outage data. The first phase, which includes at least $95 million in upgrades, is set to be completed over the next three years. Second-phase work, which includes longer-duration projects, is targeted for completion by the end of 2028.

JCP&L serves 1.1 million customers in the counties of Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren. Follow JCP&L on X @JCP_L, on Facebook at facebook.com/JCPandL or online at jcp-l.com.

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 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 X @FirstEnergyCorp or online at firstenergycorp.com.

 

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SOURCE FirstEnergy Corp.

FAQ

What is the cost of JCP&L's New Jersey Reliability Improvement Project (NYSE: FE)?

The first phase of the project includes at least $95 million in upgrades to be completed over the next three years.

When will JCP&L complete the Morris County grid enhancement project (NYSE: FE)?

The project is scheduled to be completed in October 2025.

How many customers will benefit from JCP&L's Morris County infrastructure upgrades (NYSE: FE)?

More than 2,100 JCP&L customers are expected to benefit from these infrastructure upgrades.

What improvements are included in JCP&L's Morris County reliability project (NYSE: FE)?

The upgrades include stronger wires and poles, upgraded fuses, reclosers for power rerouting, TripSaver devices for automatic line restoration, and enhanced vegetation management.