North American Utilities: 2Q26 Previews: AQN & FTS

Research evidence excerpt

North American Utilities: 2Q26 Previews: AQN & FTS

J P M O R G A N North America Equity Research

06 July 2026

North American Utilities

2Q26 Previews: AQN & FTS

Please find below our thoughts on AQN and FTS into the quarter. North American Utilities

Eli Jossen, CFA AC

• AQN: all eyes on MO implementation. Heading into the quarter, Empire (1-212) 622-4113

Electric Missouri implementation timing remains top of mind. The Missouri eli.jossen@jpmchase.com

PSC approved the $97mm settlement back in January 2026, with new rates Jeremy Tonet, CFA

contingent on three consecutive months of validated customer billing metrics. (1-212) 622-4915

Recently, an outside stakeholder filed for a seven-month extension, which the jeremy.b.tonet@jpmorgan.com

Commission rejected, instead granting a one-month extension to August 3rd Aidan C Kelly

and scheduling a July 8th hearing scoped exclusively to customer performance (1-212) 622-4912

metrics, closing off broader collateral rate case commentary. In our aidan.x.kelly@jpmchase.com

discussions, the team highlighted <10 deviations across roughly half a million Diana Niles

bills, and we expect the Commission to affirm compliance, allowing rates to (1-212) 622-3328

take effect automatically absent further action. New rates carry no retroactivity, diana.niles@jpmorgan.com

J.P. Morgan Securities LLC

however, the PISA mechanism limits net earnings impact during the

suspension period to a modest $1–2mm/month, softening the near-term drag.

Separately, the CalPeco WEMA proposed decision landed at $58mm approved

vs. $77mm requested with a final decision up next. Ultimate accounting

treatment, including whether any regulatory asset adjustment flows through

adjusted EPS, remains a key item to monitor within 2Q earnings. Elsewhere,