AKRON, Ohio - FirstEnergy Corp. (NYSE: NYSE:FE) announced a significant expansion of its smart meter technology deployment across Ohio, pending regulatory approval. The Ohio-based energy company's latest Grid Modernization Plan, dubbed Grid Mod II, proposes to install an additional 1.4 million smart meters over a four-year period, at an estimated cost of $421 million.
The plan, which follows the completion of the Grid Mod I plan that saw around 706,000 smart meters installed, aims to further modernize the electric system in Ohio. The smart meters are designed to provide customers with detailed billing information, allowing them to make informed decisions regarding their energy usage and costs.
According to Patricia Mullin, Acting President of FirstEnergy's Ohio Operations, the initiative is centered on empowering customers to manage their energy expenses more effectively.
If the Public Utilities Commission of Ohio (PUCO) approves the settlement, residential customers using an average of 750 kilowatt-hours per month could see a monthly bill increase of approximately $1.50 for the duration of the Grid Mod II plan. Still, customers are also expected to receive a one-time credit related to a prior grid modernization pilot program.
The proposal also includes a Smart Thermostat Rebate program, which allocates $3 million annually to offer rebates to eligible residential customers for the purchase of qualified smart thermostats. Low-income customers may receive up to $150 for a new smart thermostat purchase.
FirstEnergy's Ohio companies are preparing to support customers with rising energy costs by offering budget plans, special payment plans, and access to energy assistance programs. Customers seeking assistance can visit FirstEnergy's website or contact their customer service.
The expansion of smart meter technology by FirstEnergy is part of its commitment to enhancing customer experience and operational excellence. The company serves customers in several states and operates one of the nation's largest investor-owned electric systems. This news is based on a press release statement from FirstEnergy Corp.
InvestingPro Insights
FirstEnergy Corp.'s (NYSE: FE) recent announcement to expand its smart meter technology deployment in Ohio reflects its ongoing commitment to grid modernization and customer empowerment. As investors consider the implications of this initiative, several metrics and InvestingPro Tips offer valuable insights into the company's financial health and market performance.
InvestingPro Data shows that FirstEnergy has a market capitalization of $21.53 billion and is trading at a P/E ratio of 19.49, which adjusts to 18.7 based on the last twelve months as of Q4 2023. This suggests that the company is valued at a level that is consistent with its near-term earnings growth. The revenue growth for the same period was 3.4%, indicating a stable increase in income, while the gross profit margin stood at a robust 66.89%.
Investors should note the company's dividend yield of 4.43% as of early 2024, which is backed by a history of maintaining dividend payments for 27 consecutive years. This reliability in returning value to shareholders is a positive sign, especially for those seeking income-generating investments.
InvestingPro Tips highlight that FirstEnergy operates with a significant debt burden and that short-term obligations exceed liquid assets. This could be a point of concern for investors, particularly in the context of funding large-scale projects like the smart meter deployment. However, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months, which may mitigate some of the risks associated with its debt.
For those looking to delve deeper into FirstEnergy's financials and future prospects, there are 5 additional InvestingPro Tips available at https://www.investing.com/pro/FE. These tips can provide a more nuanced understanding of the company's position and potential investment opportunities.
To access the full range of insights and make the most informed investment decisions, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.