FAIRMONT, W.Va. - Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: NYSE:FE), have announced the completion of a new 5.5-megawatt solar power facility in Rivesville, Marion County, West Virginia. This development marks the second utility-scale solar site completed by the companies in West Virginia, following the first at Fort Martin Power Station in Maidsville earlier this year.
The Rivesville solar installation consists of nearly 14,000 solar panels spread across 27 acres of previously unused company-owned land. This land had been dormant since the deactivation of the Rivesville Power Station in 2012. The project employed 63 local union workers and utilized U.S.-made solar panels, racking system steel, and supporting electrical equipment.
According to Dan Rossero, Vice President of FirstEnergy's West Virginia Generation, the solar projects are not only instrumental in creating construction jobs but also contribute to economic growth by attracting and retaining employers in West Virginia. He expressed satisfaction with reaching another milestone in the company's solar program, which has received continued interest from subscribers.
The solar initiative aligns with a 2020 bill passed by the West Virginia Legislature, allowing electric companies to own and operate up to 200 megawatts of solar generation facilities. This legislative support reflects a broader trend of economic development driven by renewable energy, as many companies now require a portion of their electricity to come from renewable sources.
Mon Power and Potomac Edison are currently developing five solar projects with a combined capacity of 50 megawatts, which is part of a larger plan to develop 200 megawatts over time. The companies have also started construction on a third project in Berkeley (LON:BKGH) County this fall.
The projects will generate over 87,000 solar renewable energy credits (SRECs), which customers can purchase to support renewable energy. SRECs are proof that solar energy has been generated on behalf of the purchaser, with one SREC produced for every megawatt hour of solar electricity.
Residential, commercial, and institutional customers, including the National Energy Technology Laboratory and the town of Harpers Ferry, have enrolled in the solar program. SRECs are available for purchase at an additional cost of 4 cents per kilowatt hour on top of normal rates.
Mon Power serves approximately 395,000 customers in 34 West Virginia counties, while Potomac Edison serves around 285,000 customers in Maryland and 155,000 in West Virginia's Eastern Panhandle. This expansion of solar capacity is a clear step forward in FirstEnergy's commitment to providing clean, renewable energy to its customer base. The information is based on a press release statement from FirstEnergy Corp.
In other recent news, FirstEnergy Corp. reported a 9% increase in revenue and a 19% increase in operating earnings for the second quarter of 2024, reaching $0.56 per share, a rise from $0.47 per share in the same quarter of 2023. The company also received a $5 million federal grant to enhance electric service reliability for over 3,000 customers in rural West Virginia, with the project expected to start in 2025. Jefferies initiated coverage on FirstEnergy, assigning the stock a Hold rating, while Argus upgraded the stock from Hold to Buy, setting a new price target of $50.00. Scotiabank maintained its Sector Perform rating, expressing confidence in the company's fundamental outlook. FirstEnergy settled with the Securities and Exchange Commission, incorporating a $100 million civil penalty, and resolved all pending disputes with the Ohio Attorney General and the Summit County Prosecutor's Office. The company reaffirmed its 2024 operating earnings guidance of $2.61 to $2.81 per share and continues to make significant investments through the Energize365 capital investment program.
InvestingPro Insights
FirstEnergy Corp.'s (NYSE: FE) recent completion of its second utility-scale solar site in West Virginia aligns well with its financial performance and market positioning. According to InvestingPro data, FirstEnergy has demonstrated solid revenue growth, with a 9.12% increase in quarterly revenue as of Q2 2024. This growth trajectory supports the company's expansion into renewable energy projects.
The company's commitment to dividend payments is noteworthy, with an InvestingPro Tip highlighting that FirstEnergy has maintained dividend payments for 27 consecutive years. This consistency in shareholder returns, coupled with a current dividend yield of 3.91%, may appeal to income-focused investors interested in the company's renewable energy initiatives.
Another InvestingPro Tip indicates that FirstEnergy is trading at a low P/E ratio relative to near-term earnings growth. With a PEG ratio of 0.31 for the last twelve months as of Q2 2024, the stock appears potentially undervalued considering its growth prospects, which could include the expanding solar program.
Investors seeking more comprehensive analysis can find 5 additional InvestingPro Tips and a wealth of financial metrics on the InvestingPro product page. These insights could provide valuable context for evaluating FirstEnergy's strategic moves in the renewable energy sector and their potential impact on the company's financial health and stock performance.
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