Investment Grade Utilities: Utilities and Power Weekly

Research evidence excerpt

Investment Grade Utilities: Utilities and Power Weekly

Accessible version

Investment Grade Utilities

Utilities and Power Weekly

The BofA Global Research equity team highlighted last week that affordability debates 15 June 2026

are raising perceived regulatory risk, potentially widening risk premiums in exposed High Grade Credit

states. Markets overgeneralize risk of midterm elections, while differentiation is needed United States

by race competitiveness and candidate positioning. They provide updated regulatory Utilities

rankings and forward risk overlay, emphasizing elections and affordability as key drivers:

see the report, US Power & Utilities: Regulatory Rankings, Legislative Update, and an Table of Contents

Early Midterm Election Preview 08 June 2026. Notably, after market close on June 12,

we saw our first example of a US utility pausing negotiations with its 500-megawatt Sector Performance 2

(MW) data center customer after community, policy concerns: see the report, Avista: Utility Comps 4

AVA: Data center pause clouds upside, not our base case 15 June 2026. Independent Power Producer and YieldCo Comps 13

IG Utility Bonds Issuance 14

Last week's best and worst performers Utility Bond Performance Last Week 16

IG utilities outperformed the market last week, returning 0.6% vs. 0.5% for the Utility Bond Performance YTD 17

Bloomberg IG Aggregate Index. Last week’s best-performing HoldCo credits were Utility Equity Performance Last Week 18

Oglethorpe Power Corp. 4.20% 1St Mortgage notes due 2042 (+3.2%) and El Paso Appendix 19

Electric Co. 6.0% Sr Unsecured notes due 2035 (+1.9%), and the worst performing

HoldCo credits were Duke Energy Corp 6.450% Jr Subordinated notes due 2054 (-0.3%)

and Dominion Energy Inc 7.0% Jr Subordinated notes due 2054 (-0.3%). Gregg Brody