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FirstEnergy's (FE) Arm Replaces Sodium Lights With Smart LED
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FirstEnergy Corp.’s (FE - Free Report) unit Penelec converted more than 2,300 high-pressure sodium streetlights into smart LED streetlamps in downtown Erie and along the Bayfront during the period between November 2020 and June 2021. This efficient technology will save money and enhance public safety.
The move is part of Erie's Smart City Project, which aims to transform the city and drive economic growth. The photocells of the new street lights are well-equipped with a Wi-Fi card that allows conveyance of real-time data to a control center via a wireless communications network. It will help Penelec monitor the working of streetlights for which it had to earlier rely on its customers or employees. Also, the standard photocells know when to switch on or off the streetlights depending on the time of the day.
Need for Such Technology
The electric utilities industry on the whole needs huge amounts of investments to strengthen and upgrade its existing infrastructure. It is replacing old transmission and distribution lines, undergrounding distribution lines, adopting technological upgrade to increase the resilience of infrastructure and providing continuous power even during hurricanes, storms and other natural calamities.
Being such a capital-intensive industry, the players constantly need to worry about expanding their generation capacity to meet the needs of a growing customer base. The recent conversion move will help the utility serve more customers with its existing generation capacity as the smart LED consumes lesser electricity than the traditional sodium light.
Company’s CAPEX & Renewable Goals
FirstEnergy’s strategic investments help it serve its six million customers efficiently. In 2021, it expects to spend up to $2.9 billion while in 2022, it estimates to invest up to $2.9-$3.2 billion. Also, it provided the CAPEX guidance for 2023 in the range of $2.7-$3.1 billion.
The company keeps inspecting and maintaining its transmission system on an annual basis. This ensures its transmission lines to operate properly during the summer season and efficiently transfer high-voltage power from generation units to the designated locations. It also trims trees along the transmission lines to lower the possibility of tree-related outages.
Moreover, in 2015, the utility had set a target of reducing at least 90% of its CO2 emissions from the 2005 levels within 2045. In November 2020, it updated its aim to become 100% carbon neutral by 2050 with a mid-term goal of 30% cut in greenhouse gases within the company's direct operational control by 2030 from the 2019 baseline. Also, plans are afoot to electrify 30% of vehicle fleet by 2030 and the rest 70% by 2050. The company also implemented a corporate waste reduction and recycling initiative in its service territories.
Peer Moves
Along with FirstEnergy, other utilities like Xcel Energy (XEL - Free Report) , DTE Energy (DTE - Free Report) and Avista Corporation (AVA - Free Report) are also adopting measures to utilize cleaner energy sources to generate electricity. These companies have plans in place to supply 100% clean energy to their customers.
In the past three months, shares of the utility have gained 8.2% against the industry’s 1.2% decline.
Three Months Price Performance
Image Source: Zacks Investment Research
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Image: Bigstock
FirstEnergy's (FE) Arm Replaces Sodium Lights With Smart LED
FirstEnergy Corp.’s (FE - Free Report) unit Penelec converted more than 2,300 high-pressure sodium streetlights into smart LED streetlamps in downtown Erie and along the Bayfront during the period between November 2020 and June 2021. This efficient technology will save money and enhance public safety.
The move is part of Erie's Smart City Project, which aims to transform the city and drive economic growth. The photocells of the new street lights are well-equipped with a Wi-Fi card that allows conveyance of real-time data to a control center via a wireless communications network. It will help Penelec monitor the working of streetlights for which it had to earlier rely on its customers or employees. Also, the standard photocells know when to switch on or off the streetlights depending on the time of the day.
Need for Such Technology
The electric utilities industry on the whole needs huge amounts of investments to strengthen and upgrade its existing infrastructure. It is replacing old transmission and distribution lines, undergrounding distribution lines, adopting technological upgrade to increase the resilience of infrastructure and providing continuous power even during hurricanes, storms and other natural calamities.
Being such a capital-intensive industry, the players constantly need to worry about expanding their generation capacity to meet the needs of a growing customer base. The recent conversion move will help the utility serve more customers with its existing generation capacity as the smart LED consumes lesser electricity than the traditional sodium light.
Company’s CAPEX & Renewable Goals
FirstEnergy’s strategic investments help it serve its six million customers efficiently. In 2021, it expects to spend up to $2.9 billion while in 2022, it estimates to invest up to $2.9-$3.2 billion. Also, it provided the CAPEX guidance for 2023 in the range of $2.7-$3.1 billion.
The company keeps inspecting and maintaining its transmission system on an annual basis. This ensures its transmission lines to operate properly during the summer season and efficiently transfer high-voltage power from generation units to the designated locations. It also trims trees along the transmission lines to lower the possibility of tree-related outages.
Moreover, in 2015, the utility had set a target of reducing at least 90% of its CO2 emissions from the 2005 levels within 2045. In November 2020, it updated its aim to become 100% carbon neutral by 2050 with a mid-term goal of 30% cut in greenhouse gases within the company's direct operational control by 2030 from the 2019 baseline. Also, plans are afoot to electrify 30% of vehicle fleet by 2030 and the rest 70% by 2050. The company also implemented a corporate waste reduction and recycling initiative in its service territories.
Peer Moves
Along with FirstEnergy, other utilities like Xcel Energy (XEL - Free Report) , DTE Energy (DTE - Free Report) and Avista Corporation (AVA - Free Report) are also adopting measures to utilize cleaner energy sources to generate electricity. These companies have plans in place to supply 100% clean energy to their customers.
Zacks Rank & Price Performance
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, shares of the utility have gained 8.2% against the industry’s 1.2% decline.
Three Months Price Performance
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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