Barclays sees independent utilities to be negatively impacted by PJM auction delay

FirstEnergy

11/10/2024 17:05

** Brokerage Barclays notes potential delay of grid operator
PJM Interconnection capacity auction to have negative
implications for PJM-operating independent power producers
    ** Could negatively impact Constellation Energy  CEG.O ,
Talen Energy  TLN.O , Public Service Enterprise Group  PEG.N 
    ** TLN down 4.6%, PEG falls 0.8%, while CEG down ~0.6% 
    ** Barclays says the delay however could be positive for
transmission and distribution utilities like Exelon Corp.
 EXC.O , FirstEnergy  FE.N , PPL  PPL.N  on prospect of
potential change to market structure that could create less
future tightness in upcoming auction
    ** EXC rises 1.4%, FE up ~1.1% and PPL gains 0.7% 
    ** Barclays stated that the potential delay is
disappointing, as it further postpones yet another market signal
needed to help incentivize new electricity generation
    ** "Though we stress AI still needs to be powered and this
does not necessarily change the long-term demand equation for
power" - Barclays

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))