MARIA: WELCOME BACK.
THE CHANGES FACE OF ENERGY,
ELECTRIC UTILITY COMPANY FIRST
ENERGY LAUNCHING A $500 MILLION
GRID MODERNIZATION PROGRAM TO
ENHANCE THE FLOW OF ELECTRICITY
ACROSS THE REGION.
IT IS EXPECTED TO BENEFIT MORE
THAN 1 MILLION CUSTOMERS AND
WILL INCORPORATE INNOVATIVE
SMART TECHNOLOGY TO HELP CUT THE
FREQUENCY AND DURATION OF POWER
OUTAGES.
JOINING US RIGHT NOW IS THE CEO
OF FIRST ENERGY, CHARLES JONES
MANY THANKS FOR BEING HERE.
>> THANKS FOR HAVING ME.
MARIA: I WANT TO FIND OUT WHAT
THE MODERNIZATION PLAN AND WHAT
IT MEANS.
IN ORDER NOR FIRST ENERGY TO
GROW, YOU WANT TO SEE A GROWTH
BACKDROP IN THE ECONOMY.
THERE'S A DEBATE ON WHERE WE ARE
RIGHT NOW.
HOW DO YOU SEE THINGS?
>> I THINK THE ECONOMY'S DOING
WELL AND I TELL PEOPLE THAT AT
FIRST ENERGY WE MONITOR
6 MILLION ECONOMIC INDICATORS
EVERY MONTH CALLED ELECTRIC
METERS, HOW FAST THEY'RE
SPINNING, HOW MANY NEW METERS
WE'RE CONNECTING TO THE SYSTEM,
THERE'S A PROXY FOR HOW THE
ECONOMY'S DOING AND WE'RE
STARTING TO SEE THAT GROWTH COME
INTO OUR FIVE-STATE REGION.
MARIA: THAT'S A GOOD PROXY.
WITH ECONOMIC GROWTH THOSE
METERS ARE GOING FASTER AND
MOVING AND THERE'S MORE
ACTIVITY.
>> YES, YES.
MARIA: TELL US ABOUT THE
MODERNIZATION PLAN.
YOU'VE BEEN WORKING ON THIS,
INVESTING IN THE GRID FOR
SEVERAL YEARS NOW.
WHERE ARE YOU IN THE PROCESS?
>> WE'VE BEEN INVESTING IN OUR
TRANSMISSION INFRASTRUCTURE NOW
FOR FIVE YEARS, A LITTLE OVER
$1 BILLION A YEAR FOR THE LAST
FIVE YEARS.
THIS $500 MILLION PROGRAM THAT
WE JUST ANNOUNCED IS IN OHIO.
IT'S DOWN AT THE LOWER VOLTAGES,
THE DISTRIBUTION LEVEL, AND IT'S
ALL DESIGNED TO MAKE THE GRID
MORE RESILIENT, ADD AUTOMATION
TO IT, MAKE IT SO THAT IT
RESPONDS WHEN THERE ARE OUTAGES
AUTOMATICALLY INSTEAD OF US
HAVING TO SEND CREWS OUT TO PUT
THE POWER BACK ON.
MARIA: THIS IS A BIG
SECURITY ISSUE AS WELL.
THIS GRID HAS TO BE SECURE.
>> YES.
MARIA: TELL US ABOUT THAT, YOU
HAVE CONFIDENCE IN THAT?
>> I DO, I DO.
AND OUR ENTIRE INDUSTRY IS
FOCUSED ON SECURITY FROM BOTH A
CYBER PERSPECTIVE AND FROM A
PHYSICAL PERSPECTIVE.
AND WE'RE SPENDING TENS OF
MILLIONS OF DOLLARS EVERY YEAR
AT FIRST ENERGY TO MAKE SURE
THAT WE IDENTIFY THREATS AND
WE'RE PROTECTING OUR CUSTOMERS
FROM THOSE THREATS.
MARIA: THE COMPANY RECENTLY
ANNOUNCED PLANS TO USE SAVINGS
FROM THE TRUMP ADMINISTRATION'S
TAX CUTS AND JOBS ACT TO RETURN
$900 MILLION TO CUSTOMERS.
YOU'RE ALSO THE SAVINGS --
YOU'RE USING THE SAVINGS TO
UPGRADE TECHNOLOGY FOR THE
DISTRIBUTION GRIDS.
TELL US ABOUT THAT AND THE
EFFECTS FROM TAX REFORM.
>> TAXES ARE INCLUDED IN OUR
CUSTOMERS' RATES.
WHEN THE FEDERAL GOVERNMENT CUT
TAXES FOR OUR COMPANY, THOSE ARE
FAIRLY DUE BACK TO CUSTOMERS.
WE WORKED WITH ALL OF THE
REGULATORY COMMISSIONS AND ALL
FIVE STATES THAT WE SERVE AND
ALSO THE FEDERAL ENERGY
REGULATORY COMMISSION TO MAKE
SURE THAT THOSE SAVINGS FLOW
BACK TO OUR CUSTOMERS AND LOWER
THEIR BILLS.
MARIA: WAS IT VERY SIGNIFICANT
IN TERMS OF THE IMPACT ON FIRST
ENERGY?
>> WELL, $900 MILLION IS
SIGNIFICANT.
BUT IT WAS NOT SIGNIFICANT IN
TERMS OF THE IMPACT ON OUR
COMPANY BECAUSE THEIR
COMPANY BECAUSE THEY'RE DOLLARS
WE'RE CORRECTING FROM CUSTOMERS
-- WE'RE COLLECTING FROM
CUSTOMERS ANYWAY.
MARIA: YOU'RE USING DRONES TO
HELP SAVE WILDLIFE.
TELL US ABOUT THIS.
HOW HAVE YOU CHANGED YOUR
BUSINESS MODEL BASED ON
TECHNOLOGY ON HOW YOU CAN USE IT
DIFFERENTLY.
>> TECHNOLOGY IS IMPACTING EVERY
INDUSTRY AND OURS IS THE SAME.
WE USE DRONES TO DO AERIAL
PATROLS AND CHECK FOR DAMAGE,
FOR EXAMPLE, AFTER A STORM LIKE
LAST NIGHT.
THIS IS A TYPE OF EVENT WITH
LEAVES ON THE TREES AND SNOW
THIS EARLY IN NOVEMBER, WE HAD A
NUMBER OF OUTAGES.
WE CAN USE DRONES TO A PATROL
AND IDENTIFY AND DO ADVANCED
WORK SO CREWS KNOW WHAT MATERIAL
THEY NEED TO PUT THE POWER BACK
ON WHEN THEY GET THERE.
MARIA: HOW SIGNIFICANT WAS
YESTERDAY'S INCIDENT?
ANECDOTALLY, GOING AROUND THE
NEIGHBORHOODS, THERE WERE A LOT
OF TREES DOWN.
>> IN THE AREA WE SERVE, WE HAD
200,000 CUSTOMER OUTAGES.
OUR CREWS WORKED THROUGH THE
NIGHT, THEY HAVE POWER RESTORED
TO MORE THAN HALF OF THOSE
ALREADY AND WE EXPECT TO HAVE
MOST OF THEM BACK ON BY THE END
OF TODAY.
MARIA: EVERYBODY WANTS TO HEAR
THAT.
THAT'S FOR SURE.