Watts Cooking: ETR; VST; XLU; PJM; TX

Research evidence excerpt

Watts Cooking: ETR; VST; XLU; PJM; TX

TD SECURITIES (USA) LLC WEEKLY REPORT

June 14, 2026

■Energy: Utilities Watts Cooking: ETR; VST; XLU; PJM; TX

Shelby Tucker, CFA THE TD COWEN INSIGHT

646 562 1322

Our weekly Watts Cooking suggests that investors are focused on ETR and its outlook following

shelby.tucker@tdsecurities.com

its Investor Day. The VST partnerhip with KKR was of interest, as well as the recent weakness of

Eli Mingos the XLU. We also found FERC approving PJM's fast tracking of large projects notable. It is also

646 562 1407 noteworthy that laissez-faire states like TX are promoting residential customer protection.

eli.mingos@tdsecurities.com

Isaac von Hallberg Watts on Your Mind

646 562 1464 This past week, our conversations were quite varied, though ETR, VST, and the broader data

isaac.vonhallberg@tdsecurities.com center landscape were more consistently brought up. Starting with ETR, reactions to the

Investor Day were constructive. ETR remains a favorite among long-only accounts. The key

takeaway from the meeting was the extension of the growth rate through 2035. Bottom line:

management confirmed the duration of the thesis without creating reasons for concerns.

KKR announced that it is partnering with VST (see press release here) to provide infrastructure

solutions for data centers, joining a growing list of such providers. Linking with asset-heavy

VST suggests to us that this may be another way to contract VST's portfolio, though the

structure is unclear. Within that context, investors are still trying to assess the downside for

IPPs and are looking for positive catalysts for the sub-group.

The continued weakness of the utility sector is troubling some investors. Last week, the XLU

was down 0.7% versus the S&P 500 up 0.1%.