Texas Power Conference Takeaways: BTM is In; IPPs are Out

Research evidence excerpt

Texas Power Conference Takeaways: BTM is In; IPPs are Out

USA | Power & Utilities EquityJuneResearch18, 2026

Texas Power Conference Takeaways: BTM is In;

IPPs are Out

Deal or no deal? Investors have mostly moved on from the incumbent IPPs

due to a more onerous PJM/ERCOT outlook, rise of behind-the-meter (BTM)

solutions, and intensifying data center/affordability opposition. We see BTM as

well-positioned to have a primary power role for years. Recaps for AESI, CNP,

ERCOT, EPD, HNRG, KMI, NRG, PUMP, SRE, SEI, TLN, VST, & more.

A tale of two power companies. The contrast between incumbent IPPs with portfolios of existing

assets and upstart new behind-the-meter entrants was on full display at our 2026 Texas Power,

Midstream, & Behind-the-Meter conference. In 2026, the investor excitement is squarely on

companies that can deliver new generation resources to the market quickly (2027-2028) versus

owners of existing power plants that are not part of the resource adequacy/AI development

solution. BTM solution providers are filling the need for power that incumbent IPPs cannot. BTM can

deliver power quickly, without time-consuming transmission upgrades, while also preventing further

inequitable residential customer bill increases. Public IPPs broadly express confidence in ability to sign

premium contracts with data centers from existing power plants. Private IPPs and power developers

describe hyperscalers unwilling to risk their 'social license' by engaging in activity that contradicts Federal

and State policies.

Transmission opposition bubbling in Texas. Governor Abbott's wrote a letter related to data center

cost allocation and 40+ legislature members support delaying 765kv approvals. Stakeholders are

bracing for a 'noisy' 2027 legislative session.