North America Power & Utilities: IPPs: PJM RBP Shifting to Procurement First

Research evidence excerpt

North America Power & Utilities: IPPs: PJM RBP Shifting to Procurement First

Equity Research

19 May 2026

North America Power & Utilities

IPPs: PJM RBP Shifting to

Procurement First

Central procurement is now before bilateral in Sept '26; C&M North America Power & Utilities

and RBP consolidated to one path. Aligning PJM procurement POSITIVE

to upcoming BRA could lead to downward pressure on North America Power & Utilities

Nicholas Campanella

resource additions. Positive for Power names. +1 212 526 6123

nicholas.campanella@barclays.com

BCI, US

Framing the Recent RBP Proposal Change: Today PJM issued a letter to expedite and

consolidate the reliability backstop procurement (RBP) and connect and manage (C&M) Michael Lonegan

proposals while also moving up the centralized procurement before the bi-lateral process kicks +1 212 526 8462

michael.lonegan1@barclays.comoff in Sept of 2026. The goal is to mitigate the near-time reliability risk while not precluding

future bilateral contracting opportunities for additional resources to fulfill new large demand.

We see dual reads from this letter but ultimately view it as positive. We know this process overall Michael Brown

has slowed deal discussions, but PJM is working to provide clarity as fast as possible with +1 212 526 4885

michael.brown3@barclays.comresolution sooner rather than later. The procurement will now be based on the upcoming June

BRA shortfall, instead of the ~15GW number previewed in the initial RBP framework introduced

in April '26 (less supply); recall the prior auction shortfall was ~6.6GWs and this upcoming

auction results will be posted July 14th. Moving off the 15GW number we think is positive for

Power stocks, including CEG, NRG, PEG and TLN. We think it's worth monitoring the cost