Utilities and Power Weekly: Investment Grade Utilities

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Utilities and Power Weekly: Investment Grade Utilities

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Investment Grade Utilities

Utilities and Power Weekly

PJM results highlight tight markets 21 July 2026

Last week PJM capacity auction results were released for the June 1, 2028-May 31, 2029 High Grade Credit

planning year. All RTO prices cleared at the $325.00/MW-day cap with reserve margins United States

of 14.7%, well below the target of 20%, largely unchanged from prior auctions. The Utilities

auction results reinforce strong capacity pricing and tight market fundamentals for

power in the PJM region. Our equity team does not view the results as materially Table of Contents

changing the near-term outlook. Their focus is on PJM's C&M and RBP proceedings, Top Headlines, week ending Jul 17th 2

which they believe will be more important in shaping demand and contracting dynamics.

Sector Performance 4

Indiana regulators publish affordability report Utility Comps 6

Last week, the IURC published its Energy Affordability Report, opening investigations Power Comps 15

into ROEs and trackers within the new regulatory frameworks and calling for increased IG Utility Bonds Issuance 16

customer relief and cost-savings initiatives. Our equity team highlighted the potential Utility Bond Performance Last Week 18

pressure to utility earnings and cost recovery certainty. They view this initiative Utility Bond Performance YTD 19

cautiously and see authorized ROEs, reduced tracker availability, and greater Utility Equity Performance Last Week 20

shareholder-funded assistance would be unfavorable, but highlight that the process Earnings Calendar 21

remains preliminary and outcomes should not be prejudged. Appendix 22

Last week's best and worst performers