North American Utilities: 2Q26 Previews: AEP, ED, ES, EXC, FE, & PEG

Research evidence excerpt

North American Utilities: 2Q26 Previews: AEP, ED, ES, EXC, FE, & PEG

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

17 July 2026

North American Utilities

2Q26 Previews: AEP, ED, ES, EXC, FE, & PEG

Please find below our thoughts on AEP, ED, ES, EXC, FE, and PEG into the North American Utilities

ACquarter. Across our PJM EDC discussions, management teams continue to flag the Jeremy Tonet, CFA

RTO as a primary source of frustration, citing a lack of ownership of problems/ (1-212) 622-4915

solutions, slow reforms, weak governance, and a market construct that does not yet jeremy.b.tonet@jpmorgan.com

address resource adequacy or large load growth with enough urgency. We see Aidan C Kelly

PJM’s most recent capacity auction as effectively reinforcing these EDC pain (1-212) 622-4912

points and underscoring the need for constructive regulatory progress. Net/net, we aidan.x.kelly@jpmchase.com

sense a breaking point in the near future should PJM fail to accelerate Diana Niles

interconnection, develop proper incentives to support new generation, and reduce (1-212) 622-3328

diana.niles@jpmorgan.com

the risk of load leakage to competing markets. Separately, we view AWK’s PA rate

Eli Jossen, CFAcase outcome as a reaffirming marker for the PAPUC’s pragmatic, independent

(1-212) 622-4113

ratemaking approach and appreciate that successful DSIC utilization remains eli.jossen@jpmchase.com

paramount for extending stayouts and garnering favorable regulator perceptions J.P. Morgan Securities LLC

(which remains a focal point for EXC and FE).

• AEP: large load momentum alive and well; expect 3Q capex refresh to

capture upside projects; PJM options in spotlight. After catching up with

the company, we model 2Q26 adj EPS of $1.46, below the $1.50 Street median