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Pennsylvania approves $1.42 billion grid upgrade

Published 20/12/2024, 08:50 am
FE
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FirstEnergy's commitment to ongoing infrastructure investment is expected to result in consistent reliability performance, with additional LTIIP filings anticipated in the future. The company's financial metrics support this strategic direction, with InvestingPro data showing a 4.3% revenue growth in the last twelve months and an attractive 4.34% dividend yield. The information provided is based on a press release statement from FirstEnergy Corp (NYSE:FE).

FirstEnergy's commitment to ongoing infrastructure investment is expected to result in consistent reliability performance, with additional LTIIP filings anticipated in the future. The company's financial metrics support this strategic direction, with InvestingPro data showing a 4.3% revenue growth in the last twelve months and an attractive 4.34% dividend yield. The information provided is based on a press release statement from FirstEnergy Corp.

John Hawkins (NASDAQ:HWKN), President of FirstEnergy's Pennsylvania operations, highlighted the success of past improvements and emphasized that LTIIP III will further strengthen the power grid's resilience and incorporate more automated technology.

Customers will not see a bill impact from LTIIP III in 2025 as the costs for the first year are already accounted for in a distribution rate review approved by the PUC in November. The initiative is supported by Pennsylvania Act 11, which encourages utilities to accelerate investments in aging infrastructure.

The LTIIP III is part of a broader initiative called Energize365, which involves $26 billion in planned investments between 2024 and 2028 to evolve the grid and support future energy demands, including the integration of electric vehicles and clean energy sources.

FirstEnergy's commitment to ongoing infrastructure investment is expected to result in consistent reliability performance, with additional LTIIP filings anticipated in the future. The company's financial metrics support this strategic direction, with InvestingPro data showing a 4.3% revenue growth in the last twelve months and an attractive 4.34% dividend yield. The information provided is based on a press release statement from FirstEnergy Corp.

In other recent news, FirstEnergy Corp has seen significant developments. The company reported a minor decrease in GAAP earnings per share in its Third Quarter 2024 Earnings Conference Call compared to the same quarter in 2023. Despite this, FirstEnergy's capital investment plan for 2024 has been increased by 24%, with a focus on enhancing grid reliability and customer experience. An agreement for regional transmission projects has been entered, potentially bringing in a $3.8 billion investment.

Analysts have provided varied insights on FirstEnergy's stock. Scotiabank (TSX:BNS) upgraded the company's stock to Sector Outperform, expressing confidence in the company's recovery. However, Seaport Global Securities downgraded FirstEnergy's stock rating from Buy to Neutral due to regulatory risks in Ohio. Meanwhile, KeyBanc maintained its focus on FirstEnergy as a value pick in the utility sector, despite slightly lowering the price target.

FirstEnergy Corp also announced that its President and CEO, Brian X. Tierney, will assume the role of Chair of the Board from January 1, 2025. Furthermore, the company declared a quarterly dividend of $0.425 per share for Q1 2025, continuing its 27-year track record of consistent dividend payments. These are recent developments that reflect FirstEnergy's commitment to its long-term growth and operational excellence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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