Investment Grade Utilities: Utilities and Power Weekly

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Investment Grade Utilities: Utilities and Power Weekly

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Investment Grade Utilities

Utilities and Power Weekly

PJM 28/29 BRA and RBP expected this week 14 July 2026

PJM is expected to release results for its 2028/2029 Base Residual Auction (BRA) today, High Grade Credit

July 14th, likely after the market close. Our equity team expects the auction to clear at United States

the price cap, which is also likely the consensus view. Assuming the price cap is reached, Utilities

they view tomorrow's auction as largely a confirmation event rather than a catalyst for

the Independent Power Producers (IPPs). There may still be constructive read-throughs Table of Contents

from the magnitude of the auction shortfall as it could provide insight into future Top Headlines, week ending Jul 10th 2

procurement needs from Load Serving Entities (LSE). Conversely, floor clearance would

Sector Performance 3

be a significant negative for IPPs, as it would imply lower capacity revenues and raise

Utility Comps 5

questions regarding the underlying supply-demand balance within PJM. Their focus

remains on Reliability Backstop Procurement (RBP)/Connect & Manage (C&M). Expect a Power Comps 14

RBP filing this week after missing the July 10th deadline. The RBP outcome appears IG Utility Bonds Issuance 15

relatively straightforward, with the Electric Distribution Company (EDC)/Data Center Utility Bond Performance Last Week 17

Coalition (DCC) proposal that places responsibility on LSEs expected to move Utility Bond Performance YTD 18

forward. C&M remains the largest uncertainty, as no proposal received sufficient Utility Equity Performance Last Week 19

stakeholder support. Ultimately our equity team expects a compromise that preserves Earnings Calendar 20