FirstEnergy Pennsylvania Receives Approval for Infrastructure Improvement Plans

Rhea-AI Summary

FirstEnergy Pennsylvania (FE PA) has secured approval from the Pennsylvania Public Utility Commission for phase three of its Long-Term Infrastructure Improvement Plans (LTIIP III). The plan involves a $1.42 billion capital investment over the next five years to enhance service reliability for over two million Pennsylvania customers.

The initiative builds on more than $1 billion invested during 2016-2024, which has already reduced customer service interruptions by 14% since 2019. LTIIP III will focus on grid modernization and system resiliency, including installing protective devices, converting power lines, updating underground networks, and replacing aging equipment. The investment will be distributed across service areas: Penelec ($538M), Met-Ed ($382M), West Penn Power ($368M), and Penn Power ($133M).

Positive

• Secured regulatory approval for $1.42B infrastructure improvement plan
• Previous LTIIP investments reduced service interruptions by 14%
• No immediate bill impact for customers in 2025
• Part of larger $26B grid evolution program (2024-2028)

Negative

• None.

News Market Reaction

+1.61%

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+1.61% News Effect

On the day this news was published, FE gained 1.61%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Work to enhance smart grid across Pennsylvania will continue through 2029

GREENSBURG, Pa., Dec. 19, 2024 /PRNewswire/ -- FirstEnergy Pennsylvania (FE PA), a subsidiary of FirstEnergy Corp. (NYSE: FE) doing business as Met-Ed, Penn Power, Penelec and West Penn Power, has received approval from the Pennsylvania Public Utility Commission (PaPUC) to implement phase three of its Long-Term Infrastructure Improvement Plans (LTIIP III) to help ensure continued electric service reliability for more than two million Pennsylvania customers.

The plans entail an additional $1.42 billion in capital investment over the next five years across FE PA's service areas with projects designed to reduce the frequency of service interruptions for customers and shorten their duration when they occur. LTIIP III builds on more than $1 billion in investments made during the first two rounds of LTIIP that spanned 2016-2024. Since 2019, the frequency of interruptions a customer experiences over a year has dropped by 14% in areas where LTIIP work has been completed.

John Hawkins, FirstEnergy's President of Pennsylvania: "Over the past nine years, our enhancements to the power grid and proactive tree trimming along rights-of-way have yielded positive results. Our tailored improvement plans for each service area align seamlessly with our annual upgrades to the distribution network, helping us deliver the safe and reliable service our customers want and deserve. LTIIP III will further elevate these efforts by rebuilding overhead power lines and integrating more automated technology into our power lines and substations."

View photos of some previous LTIIP projects on Flickr. 

LTIIP III will focus on improving customer service reliability through grid modernization and system resiliency.

Grid modernization projects include:

• Installing protective devices such as automated reclosers and fuses to power lines and building tie lines between power line sections to isolate damage and quickly restore electric service to customers from unaffected parts of the system.
• Converting lower-voltage power lines to standard voltages to better regulate voltage and provide operational flexibility to reduce the duration of outages.
• Updating underground networks with new conduits, cable, transformers, vaults, manholes and switches.
• Replacing aging substation equipment with modern breakers and electronic relays that offer improved monitoring and operational capabilities.

System resiliency focuses on strengthening the grid with projects such as:

• Replacing aging poles and overhead wire.
• Replacing underground cable nearing the end of its useful life.
• Selectively placing distribution equipment underground where feasible to enhance reliability.
• Building new power lines to provide more sources to supply electricity to customers, enhancing operational flexibility.

These targeted distribution projects complement each utility's annual tree trimming and vegetation management efforts, which work in tandem to help minimize service interruptions.

Expected 2025-2029 LTIIP III investments for each service area are:

• Penelec – $538 million
• Met-Ed - $382 million
• West Penn Power – $368 million
• Penn Power - $133 million

Customers will see no bill impact from LTIIP III in 2025 because first-year program costs are included in FE PA's distribution rate review approved in November by the PUC. LTIIP was authorized by Pennsylvania Act 11, which was approved in 2012 and established a process to encourage electric, natural gas, water and sewer utilities in Pennsylvania to accelerate investments in aging infrastructure and create economic benefits.

FE PA anticipates filing additional LTIIPs in future years and is committed to a sound, cost-effective approach that will result in consistent reliability performance.

LTIIP III is part of Energize365, a multi-year grid evolution program focused on transmission and distribution investments that will deliver the power FirstEnergy's customers depend on today while also meeting the challenges of tomorrow. With planned investments of $26 billion between 2024 and 2028, the program will create a smarter, more secure and resilient grid that will meet and exceed reliability targets and accommodate electric vehicles, the electrification of homes and businesses and clean energy sources.

Met-Ed serves approximately 592,000 customers within 3,300 square miles of eastern and southeastern Pennsylvania. Follow Met-Ed on X @Met Ed and on Facebook at facebook.com/MetEdElectric.

Penelec serves approximately 597,000 customers within 17,600 square miles of northern and central Pennsylvania and western New York. Follow Penelec on X @Penelec and on Facebook at facebook.com/PenelecElectric.

Penn Power serves approximately 173,000 customers in all or parts of Allegheny, Beaver, Butler, Crawford, Lawrence and Mercer counties in western Pennsylvania. Follow Penn Power on X @Penn_Power, on Facebook at facebook.com/PennPower, and online at pennpower.com.

West Penn Power serves approximately 746,000 customers in 24 counties within central and southwestern Pennsylvania. Follow West Penn on X @W_Penn_Power and on Facebook at facebook.com/WestPennPower.

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 online at firstenergycorp.com and on X @FirstEnergyCorp.

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SOURCE FirstEnergy Corp.

FAQ

How much will FirstEnergy (FE) invest in LTIIP III infrastructure improvements?

FirstEnergy will invest $1.42 billion in capital improvements over the next five years (2025-2029) across its Pennsylvania service areas.

What impact has FirstEnergy's (FE) previous LTIIP investments shown?

Since 2019, areas where LTIIP work was completed have seen a 14% reduction in the frequency of customer service interruptions.

How will FirstEnergy's (FE) LTIIP III costs affect customer bills in 2025?

Customers will see no bill impact from LTIIP III in 2025 as first-year program costs are included in FE PA's distribution rate review approved in November.

How is FirstEnergy's (FE) $1.42B LTIIP III investment distributed across service areas?

The investment is distributed as follows: Penelec ($538M), Met-Ed ($382M), West Penn Power ($368M), and Penn Power ($133M).

What are the main focus areas of FirstEnergy's (FE) LTIIP III program?

LTIIP III focuses on grid modernization and system resiliency, including installing protective devices, converting power lines, updating underground networks, and replacing aging equipment.