US Power & Utilities: Watt’s Happening at PJM?

Research evidence excerpt

US Power & Utilities: Watt’s Happening at PJM?

ndependent Power Producer

C&M and RBP proceeding as the more catalyst. PJM missed its previously communicated

July 10 filing target, and we now expect a filing this week. The RBP outcome appears LSE: Load Serving Entity

relatively straightforward, with the EDC/DCC proposal that places responsibility on LSEs

C&M: Connect & Manageexpected to move forward. This proposal is further discussed here: US Power & Utilities:

Watt’s Happening at PJM? 30 June 2026. RBP: Reliability Backstop

C&M is uncertain; We expect a mix of EDC/PJM proposals Procurement

C&M remains the largest uncertainty, as no proposal received sufficient stakeholder PJM: PJM Interconnection LLC.

support. The Joint EDC proposal goes further than PJM's revised registry-based

EDC: Electric Distribution Companyframework by requiring LSEs serving new large loads to demonstrate qualifying supply

or potentially face curtailment obligations, we do not expect the final filing to adopt DCC: Data Center Coalition

either proposal in its current form. Instead, we expect a compromise that preserves

PJM's visibility into load growth and a reliability backstop while providing datacenters CEG: Constellation Energy

greater advance notice, operational flexibility, and a less restrictive compliance

TLN: Talen Energy

framework than the Joint EDC proposal. We believe this outcome is most likely given

PJM's stated desire to address reliability concerns without creating unnecessary barriers VST: Vistra Corp.

to large-load development, while also minimizing potential jurisdictional challenges

Maintain Buy on CEG/TLN/VST

We maintain our Buy ratings on CEG, TLN, & VST. We remain confident in a cap

clearance and continue to expect a balanced outcome on C&M, which should provide