FirstEnergy Upgrades New Jersey Power Grid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy FE?
Source: Newsfilter
- Grid Upgrade Project: FirstEnergy is investing approximately $30 million in significant upgrades to the power grid in northern New Jersey, aimed at providing more reliable service to nearly 25,000 homes and businesses, with completion expected in spring 2026.
- Infrastructure Enhancement: Newly installed utility poles and modernized wiring will replace outdated equipment from the 1970s, enhancing 10 miles of power lines to reduce outages and accelerate service restoration when issues arise.
- Future Demand Preparedness: The upgrades are likened to upgrading from a two-lane road to a four-lane highway, increasing the system's capacity to meet growing energy demands and ensuring stable power supply during adverse weather conditions.
- Long-term Investment Plan: This project is part of FirstEnergy's Energize365 initiative, which plans to invest $28 billion between 2025 and 2029 to build a smarter, more resilient grid that meets the evolving needs of the service area.
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Analyst Views on FE
Wall Street analysts forecast FE stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 48.840
Low
46.00
Averages
49.25
High
54.00
Current: 48.840
Low
46.00
Averages
49.25
High
54.00
About FE
FirstEnergy Corp. and its subsidiaries are involved in the transmission, distribution, and generation of electricity through its segments: Distribution, Integrated and Stand-Alone Transmission. The Distribution Segment, which consists of the Ohio Companies and FirstEnergy Pennsylvania Electric Company (FE PA), distributes electricity in Ohio and Pennsylvania. The Integrated segment includes the distribution and transmission operations under Jersey Central Power & Light Company (JCP&L), Monongahela Power Company (MP) and The Potomac Edison Company (PE), as well as MP's regulated generation operations. The segment distributes electricity in New Jersey, West Virginia and Maryland, provides transmission infrastructure, and operates 3,604 MWs of regulated net maximum generation capacity. The Stand-Alone Transmission segment consists of its ownership in FET and KATCo, which includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Investment: The gas plant represents a substantial investment of $2.84 billion, indicating the company's commitment to meeting future energy demands and its strategic positioning in the renewable energy transition, with construction anticipated to start in 2027.
- Solar Project Expansion: In addition to the gas plant, Mon Power and Potomac Edison are seeking approval for three new solar projects totaling 70 MW, to be built on former industrial and reclaimed mining lands, further diversifying their energy portfolio and supporting renewable energy development.
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See More
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- Site Selection: FirstEnergy's subsidiaries Mon Power and Potomac Edison have chosen a 35-acre site next to the Fort Martin Power Station in Maidsville for a new 1,200-megawatt natural gas power plant, which is expected to significantly enhance local power supply capacity.
- Construction Timeline: If approved by the West Virginia Public Service Commission, site work could begin as early as 2027, with the plant projected to come online by late 2031, thereby preparing for future energy demand growth.
- Decision Timeline: The company stated on February 13 that it expects a decision from the Public Service Commission within the next year, which will directly impact the project's advancement and investment returns.
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See More
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See More
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- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
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See More
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- Credibility Recovery Progress: Despite the $60 million bribery scandal, FirstEnergy's upgrade by Wolfe indicates progress in rebuilding its corporate credibility, which may attract more investor interest.
See More
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- New Plant Construction: Mon Power and Potomac Edison plan to build a 1,200-megawatt natural gas plant in Maidsville, West Virginia, expected to power approximately 500,000 homes, thereby enhancing the region's energy supply and ensuring reliable and affordable electricity.
- Project Timeline: If approved by the West Virginia Public Service Commission, construction is anticipated to begin in 2027, with the plant expected to come online by late 2031, reflecting the companies' proactive planning for future electricity demand growth.
- Solar Resource Expansion: The companies are also seeking approval for 70 megawatts of new solar generation on former industrial and reclaimed mine lands, which will complement their existing 30-megawatt solar portfolio, supporting clean energy development and creating construction jobs.
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See More
