Accessibility StatementSkip Navigation Company files regulatory rate request to enhance service reliability, improve resiliency and better meet customer needs today and in the future. ALLENTOWN, Pa., Sept. 30, 2025 /PRNewswire/ -- PPL Electric Utilities is making necessary investments to build and maintain a stronger, smarter and more resilient electric grid to better withstand increasingly severe weather, prevent outages and improve service to customers. To fund these ongoing investments, the company has f ...

GlobalData’s latest report, Smart Grid, is among the latest strategic intelligence reports from the industry analysis specialist. The report provides an industry analysis of the smart grid market, its growing demand and how it is disrupting power utilities and the power sector. The report focuses on trends related to the smart grid as a theme in technology, macroeconomic and regulatory trends. The report briefs on detailed analysis of the smart grid value chain. The report is built as a single theme, offe ...

Group 1 - DTE Energy is recognized as one of the best electric utility stocks to buy according to analysts [1] - The company announced that its smart grid devices have prevented over 16,000 outages this year [1] - DTE Energy is implementing a 5-year, $10 billion plan to enhance the electric grid, aiming to reduce power outages by 30% and cut outage time in half by the end of 2029 [1] Group 2 - DTE Energy invested over $1.8 billion in utilities during the first half of 2025 and plans to invest $4.4 billion this year [2] - The focus of the investments is on improving safety and reliability of electric and natural gas infrastructure and transitioning to cleaner energy generation [2] - The company's operating earnings for Q2 2025 were $283 million, compared to $296 million in Q2 2024, with a confirmed operating EPS guidance of $7.09 – $7.23 for 2025 [2]

Core Insights - A major reliability project is being implemented in Adams County, Pennsylvania, aimed at enhancing electric service for nearly 2,300 residents and businesses, including key facilities like Hanover Hospital and WellSpan Health [1][2]. Project Details - The East Germantown-Germantown Reliability Project, led by Mid-Atlantic Interstate Transmission (MAIT), a subsidiary of FirstEnergy, includes the construction of a new substation and a 115-kilovolt (kV) transmission line to improve service reliability and support future growth in the area served by FirstEnergy Pennsylvania Electric Company (Met-Ed) [3]. - The new East Germantown Substation is expected to be built and energized by the end of March 2026, connecting to the existing Germantown Substation via a newly constructed high voltage power line [4]. - Upon completion, the project will provide an additional electricity source, enhance operational flexibility, and expand switching capabilities, allowing for quicker restoration during outages [5]. Importance of the Project - The project aims to strengthen the grid to better handle peak loads and reduce the frequency and duration of outages, particularly during high demand periods such as heat waves or storms [6]. - The upgrades will function similarly to a backup generator for the community, designed to accommodate future growth as more homes and businesses are established [6]. Environmental Considerations - The transmission line route has been carefully studied to minimize impacts on environmentally sensitive areas and local communities, with vegetation restoration and environmental work continuing into 2026 [7]. Broader Investment Strategy - This project is part of Energize365, FirstEnergy's $28 billion investment program aimed at modernizing the electric grid from 2025 to 2029, focusing on creating a smarter and more secure grid to meet current and future customer needs [8]. - Met-Ed serves approximately 592,000 customers across 3,300 square miles in eastern and southeastern Pennsylvania [8]. Company Overview - FirstEnergy operates one of the largest investor-owned electric systems in the U.S., serving customers in multiple states and managing approximately 24,000 miles of transmission lines connecting the Midwest and Mid-Atlantic regions [9].

Group 1 - The energy infrastructure industry is undergoing a transformation driven by sustainability and efficiency initiatives [1] - Smart grid technologies are central to this transformation, utilizing digital technologies within electricity networks [1] Group 2 - The article does not provide any specific financial data or performance metrics related to companies or the industry [1]

Financial Data and Key Metrics Changes - Revenue for the second quarter increased by 7% sequentially to $762 million, aligning with guidance, driven by growth in both semiconductors and passive components [7][22] - Gross profit was $149 million, resulting in a gross margin of 19.5%, at the high end of guidance, primarily due to increased volume [24] - Book to bill ratio was positive at 1.02, marking the third consecutive quarter above one, with a backlog of $1.2 billion [23][24] Business Line Data and Key Metrics Changes - Automotive revenue rose by 4% due to improved demand from tier one customers and new ADAS programs [11] - Industrial segment revenue increased by 9%, driven by normalization of inventories and demand for smart grid infrastructure [12] - Aerospace defense revenue grew by 5%, while medical end markets saw a 4% increase, reflecting stronger demand [15][16] Market Data and Key Metrics Changes - Revenue in Asia grew by 12%, driven by AI power requirements and smart grid projects, while The Americas saw a 7% increase due to improved automotive and industrial demand [20] - Distribution revenue grew by 11%, contributing significantly to total revenue growth, while OEM revenue remained flat [18][19] Company Strategy and Development Direction - The company is focused on capacity expansion under the Vishay 3.0 initiative, with approximately $775 million invested over the past two and a half years [9][10] - Strategic initiatives include strengthening customer relationships, expanding product portfolios, and advancing silicon carbide technology [10][41] - The company plans to invest between $300 million to $350 million in 2025, with a significant portion allocated to high-growth product lines [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the inventory correction cycle is largely behind, with normalized inventory levels for passives and some excess in semiconductors [7] - Positive demand momentum is expected to continue, particularly in smart grid infrastructure and AI applications, with a stronger second half of the year anticipated [45][46] - The company is preparing for a market upturn, with increased backlog and capacity readiness to meet customer demand [45][46] Other Important Information - The company reported a negative free cash flow of $73 million for the quarter, attributed to capacity expansion investments and tax payments [31][32] - The effective tax rate is not meaningful at low levels of pre-tax income, with expectations for normalization as profitability returns [27][35] Q&A Session Summary Question: Impact of Newport fab on gross margin - The Newport fab had a lower than expected impact on gross margin in Q2, with guidance for Q3 indicating a range of 160 to 185 basis points [49][50] Question: MOSFET gross margins decline - MOSFET gross margins declined due to manufacturing inefficiencies, which are expected to improve in Q3 with increased IC sales [51][52] Question: US tariff impact - Less than 4% of products are manufactured in China and returned to the US, indicating a minimal impact from tariffs on overall revenue [55] Question: Inorganic growth and M&A opportunities - The company is actively looking for M&A opportunities, particularly in the semiconductor sector, to enhance customer presence and fill portfolio gaps [56][58] Question: Visibility and backlog for Q3 - The company is seeing a faster building of backlog and anticipates a stronger second half of the year compared to the first half [64][65] Question: Customer demand and inventory management - Customers are still cautious in planning demand, with a significant portion of orders for quick delivery, indicating a transition from an inventory-heavy market [67][68] Question: AI customer expansion and revenue metrics - The customer count for AI applications is growing, with a focus on expanding the part count and customer diversity [72][73] Question: Slipping customer programs - Adjustments in customer programs were due to design changes, impacting planned orders [76][77]

Core Insights - A major upgrade is being implemented in East Akron to enhance electric service reliability for approximately 12,000 Ohio Edison customers, including Summa Akron City Hospital [1] - The upgrade involves expanding and modernizing a substation to reduce outages and improve restoration times [1][6] Infrastructure Improvements - The substation is expanding from about 142,000 square feet to approximately 176,000 square feet, equivalent to 37 NBA basketball courts [5] - The upgrade includes the installation of gas-insulated switchgear (GIS), which helps manage electricity safely and efficiently, extending equipment life and reducing outage risks [4] Temporary Solutions - A temporary setup known as a "shoo-fly" is being utilized to maintain power flow during construction, allowing for uninterrupted service to customers [2][6] Technological Advancements - New technology will enable the system to automatically detect issues and reroute electricity, minimizing the number of customers affected by outages and speeding up restoration [3] Strategic Investment - This project is part of FirstEnergy's Energize365 initiative, a $28 billion investment program aimed at modernizing the electric grid from 2025 to 2029 [7] - The goal of the initiative is to create a smarter and more secure grid that meets current and future customer needs [7]

Core Insights - The report "Smart Metering in North America - 7th Edition" highlights the growing deployment of smart metering as a foundation for future smart grids, with significant initiatives in both developed and developing countries [1] - North America is projected to see a compound annual growth rate of 2.9% in the installed base of smart electricity meters from 152.4 million in 2024 to 180.9 million by 2030 [3][5] Market Overview - Asia-Pacific is the largest market for smart metering, while North America ranks third after Europe, with both regions experiencing a surge in smart metering projects in the past decade [2] - The penetration rate of smart electricity meters in North America is expected to rise from 82% in 2024 to over 91% by 2030, primarily driven by large investor-owned utility projects [7] Regional Insights - The installed base of smart electricity meters in the US reached 136.9 million in 2024, while Canada had 15.5 million [3] - Canada currently has a higher penetration of smart electricity meters compared to the US, but this gap is expected to narrow by 2030, with projected rates of 97% for Canada and 91% for the US [4] Industry Dynamics - Major players in the North American smart metering market include Itron, Landis+Gyr, and Aclara, with Itron holding a 35% market share and Landis+Gyr at 32% [8] - The market is characterized by a shift towards wireless RF technologies, which dominate installations in both electricity and gas sectors [9] Technology Trends - The report discusses the evolution of communication technologies for smart metering, highlighting the preference for RF mesh networks, particularly Wi-SUN-based systems [10] - Cellular communications have seen limited adoption due to cost concerns, but interest in private cellular networks is growing, potentially enhancing their role in smart metering [12] Future Outlook - The second wave of smart metering deployments is anticipated, with early adopters expected to account for nearly 75% of annual shipment volumes by the end of the forecast period [7] - Increasing investments in distribution automation, electric vehicle charging infrastructure, and smart streetlighting are driving the need for further synergies in smart metering applications [14]

Financial Performance and Growth - PPL's year-end 2023 rate base was $25.4 billion[10] and market capitalization was $20.4 billion[10] - PPL projects annual EPS and dividend growth of 6% - 8% through at least 2027[11, 43] - PPL targets a total return proposition of 9% - 12%[13, 41] - PPL plans $14.3 billion in capital investments, driving average annual rate base growth of 6.3% through 2027[13] - PPL targets annual O&M savings of at least $175 million by 2026 from a 2021 baseline[13, 65] Regulatory and Operational Efficiency - Approximately 65% of PPL's capital plan is subject to contemporaneous recovery[41, 47] - PPL aims to reduce O&M expenses by an average of 2.5% per year[66] - PPL achieved $75 million in actual 2023 O&M savings[66] - PPL's Pennsylvania segment's 2023 rate base is $9.8 billion, with 44% in electric transmission and 56% in electric distribution[86, 87] - PPL's Rhode Island segment's 2023 rate base is $3.7 billion, with 32% in electric distribution, 27% in gas LDC operations, and 41% in electric transmission[110] - PPL's Kentucky segment's 2023 rate base is $11.9 billion, with 51% in electric generation, 25% in gas LDC operations, 14% in electric distribution, and 10% in electric transmission[139, 140]

Investment Rating - The report assigns an "Overweight" (OW) rating to several companies, including Huaming Equipment, Xuji Electric, and Goldcup Electric, indicating a positive outlook for their performance [7][18]. Core Insights - Chinese power equipment companies are experiencing significant overseas market share gains, with Huaming projecting over 30-35% revenue growth from international markets and Sanxing Medical reporting a 38% year-over-year increase in overseas revenue [2][4]. - The demand for power equipment is strong from both developed markets (DMs) like the US and EU, as well as emerging markets (EMs), with companies like Huaming and Sanxing planning to establish manufacturing facilities abroad to mitigate geopolitical risks [2][4]. - Local manufacturers are gradually increasing their market share in the data center sector, although foreign companies still dominate due to their established reputations for quality [6][4]. Summary by Sections Overseas Market Expansion - Huaming anticipates continued tightness in high voltage transformer supply, benefiting tap changer manufacturers, and expects overseas revenue growth of approximately 30-35% [4]. - Sanxing Medical Electric has seen a 38% increase in overseas revenue and a 27% growth in order backlog, with significant new orders for advanced metering infrastructure (AMI) [4][5]. Competitive Advantages of Chinese Manufacturers - Chinese manufacturers like Huaming stand out due to shorter lead times (4-6 weeks compared to over 12 months for competitors) and significantly lower average selling prices (ASP) [4][5]. - High levels of automation in manufacturing processes, with Sanxing achieving around 90% automation in its power meter plants, enhance efficiency and competitiveness [5]. Data Center Equipment Demand - Liangxin Electrical is witnessing rising demand for its products in the data center sector, although foreign brands still dominate due to their reliability [6]. - The company is optimistic about increasing acceptance of local products among state-owned enterprises (SOEs), which could lead to greater market share for domestic manufacturers [6]. Domestic Demand for Power Equipment - Huaming is optimistic about domestic demand for tap changers, projecting over 10% revenue growth, while Sanxing acknowledges competitive pressures in the domestic market [6]. - Liangxin Electrical expects a 20% revenue growth overall, driven by strong demand from the renewable energy sector and data centers, despite caution regarding the property sector [6].