Electric Utilities & Power: Sparking Credit: 2Q26 Earnings Week 2 - AEP, AWK, CMS, CNP, DTE, ETR, EXC, FE, NEE, SO, WEC, XEL, XIFR; Weekly Briefing

Research evidence excerpt

Electric Utilities & Power: Sparking Credit: 2Q26 Earnings Week 2 - AEP, AWK, CMS, CNP, DTE, ETR, EXC, FE, NEE, SO, WEC, XEL, XIFR; Weekly Briefing

Kevin L Kwan AC North America Credit Research

(1-212) 270-9455 31 July 2026 J P M O R G A N

kevin.l.kwan@jpmorgan.com

US Utilities & Power – Weekly Briefing

We provide a digest of this week’s news across our Power & Utilities coverage universe.

Regulated Utilities

DOE transformer rule review sparks industry pushback. The Trump administration

is considering changes to its 2024 distribution transformer efficiency standards, citing

concerns around domestic manufacturing capacity, supply-chain resilience, material

availability, and national security implications. Most utility industry groups (including

EEI, APPA, NRECA) oppose revisiting the rule, arguing that the industry has already

invested to comply with the 2029 implementation timeline. Distribution transformers

remain a key bottleneck to grid expansion. Source: Utility Dive, July 29, 2026.

[utilitydive.com]

Utility rate case activity remains elevated. Regulatory Research Associates reported

that 71 electric rate cases and 62 gas rate cases were pending across 42 states as of July

13. The report cited continuing inflation, elevated interest rates, capital investment

requirements and growing load growth expectations as key drivers of utility filing

activity. Source: RRA Regulatory Focus, July 23, 2026.

CMS Energy plans strategic shift toward regulated operations. CMS Energy

announced plans to sell renewable generation assets as part of an effort to simplify its

corporate structure and increase its focus on regulated utility operations. The company

indicated the transaction could generate approximately $500 million in proceeds and