Regulated & Diversified Utilities / IPPs: Monthly Meter Reading

Research evidence excerpt

Regulated & Diversified Utilities / IPPs: Monthly Meter Reading

Update

May 21, 2026 04:06 AM GMT

Morgan Stanley & Co. LLCMRegulated & Diversified Utilities / IPPs | North David Arcaro, CFA

America Equity Analyst

David.Arcaro@morganstanley.com +1 212 761-1817

Alexandre Zimmermann

Research AssociateMonthly Meter Reading Alexandre.Zimmermann@morganstanley.com +1 212 761-3617

Zhizhong Dong

The April Edition Research Associate

Jonathan.Dong@morganstanley.com +1 212 761-5632

Amanda Huang

In April, utilities underperformed the S&P's +10.49% return by 840 bps, with US 10-

Research Associate

Year yields increasing ~8 bps from the beginning of the month. Notable moves Amanda.Huang@morganstanley.com +1 212 761-4197

during the month included the outperformance of SEI (+30.67%) and IPPs TLN Jeremy Herring

(+16.66%) and CEG (+12.09%) and the underperformance of PA utilities (-6.20%) Jeremy.Herring@morganstanley.com +1 212 761-4182

and EXC (-6.18%) and CA utilities PCG (-5.41%) and EIX (-3.89%).

Diversified Utilities / IPPs

We analyzed the NextEra/Dominion merger announcement (here and here). North America

Industry View Attractive

Earlier this week, NEE and D announced an agreement to merge. We think the deal Regulated Utilities

is attractive overall, with modest immediate accretion, a path to accelerated North America

Industry View In-Line

generation and transmission capex investment to power data centers, top tier 9%+

See our price target changes in Exhibit 1.EPS growth, improved balance sheet with higher debt thresholds, cleaner and more

predictable earnings power with less influence from tax credits, and broader

diversification of asset bases and growth opportunities. We see value in greater

scale, especially given the power infrastructure needs of data centers, tightening