PPL Electric Utilities, a subsidiary of PPL Corporation (PPL), announced substantial power savings in the first year of its E-power appliance recycling program.
PPL Electric Utilities estimates that its customers saved roughly 26,000 megawatt-hours (MWh) of energy in the past year by recycling more than 15,000 older, energy-wasting refrigerators, freezers and room air conditioners. The energy saved under the program is sufficient to power nearly 2,600 homes for a year.
The company had launched the E-power appliance recycling program in November 2009, encouraging customers to replace old, power consuming refrigerators, freezers and room air conditioners. The company has contracts with JACO Environmental to manage its appliance recycling program.
Under the program, customers receive $35 for recycling an old refrigerator or freezer, and the pick-up is free. Customers receive a $25 incentive for their old room air conditioners, but those must be recycled along with a refrigerator or freezer. About 95% of these materials are recycled and reused.
In addition to incentives to recycle, E-power also offers customers rebates on certain energy-efficient appliances such as refrigerators and clothes washers. E-power is all about using tools, programs and incentives to educate customers on how to best manage their energy use. The program also helps customers reduce their carbon footprint and save valuable natural resources.
The program is limited to the removal of two units per household and is available to PPL Electric Utilities residential electric customers. To qualify, refrigerators and freezers must be in working order with an inside measurement of 10 cubic feet or more.
PPL Electric Utilities targets recycling about 70,000 appliances under the program by May 2013. We believe the company is positioned to benefit from future EPA regulations, given its voluntary environmental control efforts.
In the most recent quarter, PPL Corporation’s earnings from continuing operations of 74 cents per share, was above the Zacks Consensus Estimate of 69 cents and the year-ago earnings of 52 cents.
For fiscal 2010, PPL Corp. estimates operating earnings to be in the $2.80 − $2.95 per share range compared to $1.95 earned in fiscal 2009. The Zacks Consensus Estimates for the fourth quarter, fiscal 2010 and fiscal 2011 are 59 cents, $2.85 and $2.66, respectively.
Allentown, Pennsylvania-based PPL Corporation is a diversified utility company, primarily generating and marketing electricity in two key markets − the northeastern and western U.S. Through its subsidiary, PPL Electric Utilities, the company provides electric delivery services to about 1.4 million customers in Pennsylvania.
We maintain our Neutral recommendation on the stock for the long term. PPL Corp. currently has a short term Zacks #3 Rank (Hold). The company’s closest peers, Allegheny Energy Inc. (AYE) and Exelon Corp. (EXC), also hold the same rank.
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