Published on 12 Apr 2024 on Zacks via Yahoo Finance

FirstEnergy (FE) Rides on Investments, Infrastructure Upgrade

FirstEnergy Corporation FE continues to benefit from a growing regulated base, and the expansion of distribution and transmission lines is expected to further improve operations. The company’s strategic investment is likely to increase grid reliability and enable efficient customer service. FE’s Energize365 initiative will add to its overall operational strength.However, this Zacks Rank #3 (Hold) company faces risks related to the timely completion of projects and seasonal factors.

Tailwinds

The utility’s efforts to expand its regulated generation mix provided stability to its earnings trajectory. In the last few years, the company witnessed a successful broadening of regulated operations and a transition to become a fully-regulated utility company.Through 2025, the company expects to deploy 1.2 million smart meters, along with the supporting communications infrastructure and data management systems, to enhance the delivery of safe, reliable power for customers.FE’s Energize365 is a multi-year grid evolution platform, focused on enhancing customer experience while maintaining its strong affordability with rates at or below its in-state peers. With planned investments of $26 billion between 2024 and 2028, the company is expected to install advanced equipment and technologies that will strengthen and modernize its transmission and distribution infrastructure. Strengthening of the transmission and renewable generation assets should allow FE to transmit electricity even during adverse weather conditions.