One of the leading electric utility providers in the U.S., FirstEnergy Corp. (FE -Analyst Report) announced that it is investing nearly $35 million in transmission-related projects in western Pennsylvania.

The recent boom in the Marcellus Shale gas industry has triggered demand for additional electric load in the region. New transmission lines are also expected to ensure reliable services for West Penn Power customers.

These investments include existing transmission line upgrades as well as the construction of two new electric substations to provide for expanding natural gas processing plants and compressor stations in the Marcellus Shale gas fields. These gas facilities are expected to create additional load growth of about 370 megawatts (“MW”), equivalent to powering 180,000 new homes in FirstEnergy's western Pennsylvania territory.

FirstEnergy was directed by PJM Interconnection, the regional transmission organization coordinating the movement of wholesale electricity in 14 U.S. states, to undertake these projects to maintain service reliability. The projects comprise a $31 million substation in Washington County for supporting a gas processing facility near Burgettstown, PA. Natural gas refinement and separation processes require a considerable amount of electricity.

Expected to be operational in 2016, this new substation is expected to benefit more than 40,000 West Penn Power customers in Washington and Allegheny counties.

Apart from building the substation, the company plans to install new equipment, worth $1 million, to regulate voltage levels and upgrade a 138-kilovolt transmission line stretching for nine miles. This would cost around $2.3 million.

Driven by the shale boom, FirstEnergy has plans to invest $250 million in TrAILCo to cater to rising electric demand across its regulated service territories. The $35 million capital layout is part of this larger design.

FirstEnergy’s transmission projects are expected to meet 1,100 MW of additional electric demand expected in the next five years.