Dive Brief:
- FirstEnergy plans to spend $4.2 billion on transmission in the next four years as part of the company's shift to focus on its regulated operations, company officials said during an earnings conference call.
- FirstEnergy's competitive power sales fell 4% last year to about 93 million MWh because the company has a smaller unregulated power plant fleet.
- Total weather-adjusted retail sales increased 1%, with industrial sales jumping 2% in the shale gas boom in the region. Commercial sales increased 0.5% and residential sales climbed slightly. FirstEnergy expects retail sales to increase 0.6% this year.
Dive Insight:
Last year, FirstEnergy, based in Akron, Ohio, decided to take a “back-to-basics” approach to its operations.
“We have significantly repositioned our business mix and earnings profile by turning our strategic focus to more predictable and sustainable growth through systematic investments in our core regulated businesses,” Tony Alexander, FirstEnergy president and CEO, said. “We are targeting 80% or more of our earnings through regulated operations in 2014 and going forward.”
The company plans to take fewer business risks. “We intend to set a relatively conservative course over the next few years that is focused on taking advantage of well defined and attainable opportunities,” Alexander said.
FirstEnergy believes its service territory may be poised for sales growth. “We are cautiously optimistic that we are seeing signs of more sustained recover in both the commercial and industrial sectors,” Alexander said.
