Innovation

First Energy has not updated its transmission stations since the 1960s. They have started an initiative called Energizing the Future where they are investing 4.2 billion to upgrade and modernize all their transmission systems so that their future customers can have reliable energy. This is a huge endeavor spanning across the Midwest to MidAlantic region. There are many innovative and unique solutions that First Energy had to provide in order to do this.

First, they are upgrading all their cables to fiber cables. Fiber cables lose less energy during transmission than traditional cables making the transmission more efficient. This means providing more sustainable energy overall for society with the same sources. This benefit to society is enhanced further with the increase in renewable energy at the company.

First Energy is also implementing smart technology across all their substations that will improve efficiency and security. Implementing smart technology will give them better control of the power. This smart technology will allow them to locate where outages happen faster and control the damage done by outages. This not only benefits customers, but it will benefit the security of our country. For instance, if a terrorist were to attack a substation then with smart technology the control center can shut down those grids and avoid the entire electrical grid from being shut down.

Inspiration

First Energy decided to take up this initiative for several reasons. First, it aligns with their missions to plan for the future energy of our society. First Energy is looking many years out to see the needs of the customers, and they see that the demand for power will be growing as more people develop more needs for power. An example of this is the growing need for electric cars will be a cause for more reliable electricity.

If first Energy has the option to make the world a better place while still being a viable business they do. This initiative makes the world a better place by providing customers with core needs in today's world, but it also gives them a competitive advantage. With the advances in technology and an increase in competition, they needed to make the investment in order to stay competitive. Electrical services, in general, are becoming more reliable, efficient, and safe. The innovations through this initiative are First Energy's attempt at remaining competitive.

Finally, some states have made new laws that require some of the changes to be made and many of the states have incentivized these types of improvements.

Overall impact

Overall, First Energy will have upgraded the transmissions systems in the Midwest United States to provide future sustainable and secure energy. They will have improved the lives of both their customers and their employees. Additionally, they are trending towards more sustainable sources of energy in order to reduce their carbon footprint.

Business benefit

By making this investment now, First Energy is making itself much more competitive. The investment will make their product more reliable, efficient, and safe. The reliability will allow them to meet the growing demand for energy. The efficiency will allow them to give their customers cheaper electricity, and the safety will come in the form of a reduction in the risk of the entire grid going out. This makes their overall product better.

Additionally, according to Brian Prijatel, FERK (Federal Energy Regulatory Commission) and state public utility commissions have incentivized the investment by offering forward-looking rates meaning that First Energy can collect a rate of return up front (14%) on transmission, and with First Energy's coal and nuclear plant generation businesses currently struggling this will improves cash flow investment into more sustainable generation sources.

Social and environmental benefit

Energizing the future will have many positive effects for society. The main benefit to society will be cheaper, more reliable, and safer sustainable energy for future generations, and according to Brian Prijatal, a business analyst for the Energizing the future initiative, much of that energy will be supplied by renewable energy sources such as wind and water. He believes this is a growing trend in the industry.

The second benefit for society is that most of the work for the project is being done by local contractors. This will create many jobs in local communities in the upcoming years. Additionally, when First Energy is creating new facilities in areas, they work with the local community to make sure their impact will not be harmful in any way.

Another additional benefit of the initiative, specifically the smart technology, is that it will allow First Energy to inform their customers how to use electricity more efficiently. This not only helps customers save money, but causes less waste of resources and reduces the impact on the environment.

Interview

Brian Prijatel, Business Analyst