North American Utilities Model Updates: AEP, ED, ES, EXC, FE, PEG

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North American Utilities Model Updates: AEP, ED, ES, EXC, FE, PEG

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

14 May 2026

North American Utilities

Model Updates: AEP, ED, ES, EXC, FE, PEG

We remain cautious on the PJM wires companies given elevated affordability North American Utilities

ACconcerns from state level officials. While the PA governor’s strongly Jeremy Tonet, CFA

worded letter and PECO rate case withdrawal have prompted an uptick in concerns (1-212) 622-4915

over PA’s regulatory backdrop, we continue to track a relatively pragmatic and jeremy.b.tonet@jpmorgan.com

thoughtful approach at the PAPUC with views that convey 1) commission Aidan C Kelly

independence, including not taking orders from the executive branch or others in (1-212) 622-4912

government (no evidence of any orders directed), and 2) a firm understanding of aidan.x.kelly@jpmchase.com

all stakeholder interests, including financial market impacts on cost of capital and Diana Niles

ultimately the bill. Nevertheless, we acknowledge that political rhetoric continues (1-212) 622-3328

diana.niles@jpmorgan.com

to represent an overhang into the election, despite the possiblity of not having any J.P. Morgan Securities LLC

meaningful deterioriation in regulatory outcomes. We see EXC’s capex

adjustment as a clear demonstration of utilities redirecting capital into more

favorable jurisdictions and would not be surprised if multi-state PJM EDCs take

additional action should select state regulatory climates deteriorate. We are

updating our models for recent results, reports, and filings. Please see our changes

below.

• AEP reported 1Q26 adj EPS of $1.64, surpassing the $1.50/$1.57 JPMe/Street

median estimates. AEP raised expectations to achieve greater than 9% growth