Letters from Washington: Power & Utility Policy Revisited

研报英文原文证据摘录

Letters from Washington: Power & Utility Policy Revisited

NORTH AMERICA | Power & Utilities EquityJulyResearch22, 2026

Letters from Washington: Power & Utility Policy

Revisited

We hosted our latest Power & Utility regulator forum over the past few days.

Predictably, affordability remains the single biggest word pervading the event.

Challenges ahead persist across the sector, and we reiterate our more reserved

stance on sector valuation given the twin headwinds of elevated interest rates,

drive to delay cases, and clear risk of authorized ROE reductions. Data center-

driven upsides linger across Central US.

We hosted our latest meetings around the annual NARUC Summer conference. Not only was

affordability the single biggest topic, we perceive that the 'shoes' have yet to finish dropping on the

subject. Expect PJM states in the Mid-Atlantic to remain the epicenter of this focus, but perceive

the focus expanding. See answers emerging to the critical PJM debates in coming weeks, likely

boding a bit cautiously for IPPs as governance turned in favor of states. Sets the stage for greater

scale of procurement. Meanwhile, data center development activity remains ripe across the Central

US. Numerous geographies debating further deployments - especially expansions of existing sites.

Risk however is data center permitting; emerging risks everywhere, by the week. We don't see this

improving as polls on DC now show 80%+ negativity.

Transmission spend is increasingly scrutinized across all regions. This has been building for

some time. Challenges to both cost allocation, and pushback on use of eminent domain/land

rights make this a clear risk of further delay. Behind the meter (BTM) gen will become more

institutionalized given these delays.