Investment Grade Utilities: Utilities and Power Weekly

Research evidence excerpt

Investment Grade Utilities: Utilities and Power Weekly

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Investment Grade Utilities

Utilities and Power Weekly

PJM Whitepaper addressing potential market reform 11 May 2026

On May 6th, PJM released a whitepaper highlighting structural challenges to the market High Grade Credit

driven by rapid demand growth, retirement of dispatchable generation, along with supply United States

chain and permitting frictions slowing new generation buildout. The report offers three Utilities

potential paths forward: increasing long-term contracting to stabilize the capacity

market, abandoning uniform reliability to prioritize different areas or types of customers, Table of Contents

and/or shifting revenue recovery from the capacity market toward the energy and Top Headlines, week ending May 8th 2

ancillary services market. Our equity team sees IPPs as likely beneficiaries (see report:

Sector Performance 5

US Power & Utilities: Power Playlist: Policy Meets Execution in PJM & ERCOT 07 May

Utility Comps 7

2026) as they have the ability to drive additionality through new builds, expansions, or

higher utilization. While they view the pathways as a positive, the added uncertainty Independent Power Producer and YieldCo Comps 16

around timing and outcome could create an overhang for all market participants. IG Utility Bonds Issuance 17

Utility Bond Performance Last Week 18

Utility Bond Performance YTD 19Last week's best and worst performers

IG utilities performed in line with the market last week, returning 0.4%. Last week’s best Utility Equity Performance Last Week 20

performing HoldCo credits were Atmos Energy Corp. 2.850% Sr Unsecured notes due Appendix 21

2052 (+1.5%) & Oglethorpe Power Corp. 5.250% 1st Mortgage notes due 2050 (+1.4%)