"FirstEnergy's third quarter net income this year tumbled to about half of what it was a year ago," read the lead of The Plain Dealer's pre-call story. I had to quickly whip up a side of schadenfreude to serve with lunch!
Tony the Trickster mentioned that, after recent closings, his "fleet" of generators is now about the same size as FirstEnergy's "fleet" was at the time it merged with and swallowed up the former Allegheny Energy. This wouldn't be the first time I pondered if the merger's sole purpose was to carve up the Allegheny carcass, saving that which benefited FirstEnergy and tossing the rest on the rubbish heap. When does the sale of troubled Allegheny distribution subs begin, now that FirstEnergy has accomplished its evil plan to raise cash by sucking the lifeblood out of Mon Power/Potomac Edison and leaving a dried up, debt-laden shell that no longer provides service to its customers?
For example, we have reduced the size and mix of the fleet by closing and selling competitive units. Last month, we closed the Hatfield and Mitchell Power plants and we expect to complete the sale of certain hydro assets later this year. In addition, we completed the Harrison and Pleasants transfer this quarter. Once the RMR units are deactivated, our competitive fleet will be a little more than 13,000 megawatts. This is about the same size as our fleet prior to the Allegheny merger, but it's a much stronger platform of units, more environmentally controlled and more efficient overall.
Let's turn to an update on the financial plan that we introduced in February. Through a series of actions this year, we have made significant progress towards completing the plan, strengthening our credit metrics and reducing our risk profile.
This financial plan, which is now virtually complete, successfully improves the balance sheet at our competitive and regulated businesses and enhance liquidity in a very short period of time.
Last week, our Board of Directors approved as a part of our energizing the future program, a new multiyear $2.8 billion incremental investment in a transmission reliability excellence plan. The plan includes additional transmission investments above current plans, which are expected to be about $500 million in 2014, growing to about $700 million in 2015 and about $800 million in both 2016 and 2017. This program will begin with investment primarily in ATSI, but will ultimately extend throughout our service area. We currently expect to fund these investments with a combination of debt and equity. These projects include rebuilding lines and equipment to improve reliability and reduce future maintenance costs, enhancing and expanding communication networks to harden the system and increasing system capacity to meet the service level and reliability requirements of our customers.
In response to a question about coal costs, Donny started talking about pulling his lever. I'll spare you the hand gestures that instigated. And before the laughter had died down, Tony started talking about the possibility of things being soft down the road...
I love my job.