Supply-Demand Imbalance - Increased load and demand are at levels not seen in the last 30-40 years, while the industry continues to operate under 50-year-old rules [4] - Utilities in the PJM marketplace, which do not own generation, are experiencing the greatest imbalance [4] - Vertically integrated utilities, representing 30-40% of the country, are not facing the same issues as they are increasing supply [5] - Customers are bearing the brunt of the supply shortage due to affordability issues [5] Addressing the Shortage - PJM recognizes its shortfalls and is working internally to address them [6] - Governors across the PJM states are collaborating on proposals to increase generation and address customer affordability issues [7][8] - Solutions will require short, mid, and long-term strategies and collective effort [8] Factors Contributing to Increased Demand - Data centers and AI are contributing to increased demand, but are not the sole cause [9] - Onshoring, manufacturing, and the electrification of everything are simultaneously creating a "perfect storm" [10] - Existing generator base is incentivized to maintain current load levels to maximize dollar value [10] Proposed Solutions - Allowing utilities to re-enter the generation business, with state control and management, could provide cost certainty and clarity [11] - Exelon CEO suggests combined cycle gas turbines, community solar, and battery storage as potential solutions [12]

Core Insights - The utilities sector is currently the third best performing sector, driven by the increasing energy demand from AI technologies [1] - There is a significant supply-demand imbalance in the energy market, particularly in the PJM marketplace, which could lead to power shortages in the coming years [4][6] - The governors of states within the PJM region are collaborating to address the energy supply issues and affordability challenges faced by consumers [7] Supply-Demand Imbalance - The energy demand has surged to levels not seen in the last 30 to 40 years, while the regulatory framework has remained unchanged for the past 50 years [4] - Vertically integrated utilities are managing the demand effectively, but non-generating utilities are struggling to meet the increased demand, leading to affordability issues for customers [5] Proposed Solutions - There is a call for utilities to re-enter the generation business to ensure better control and clarity over energy supply [11] - Alternative energy solutions such as combined cycle gas turbines, community solar, and battery storage are suggested to enhance energy supply [12] - A sense of urgency is needed to address the potential crisis in energy supply before it escalates [14]

Company Strategy & Performance - PG&E employs a "simple affordable model" involving infrastructure investment offset by operating cost reductions, load growth, and improved credit metrics to lower rates [2][3] - The company has lowered rates three times in the last 15 months and plans to lower them again in 2026 while growing earnings at over 9% per year [4] - PG&E has buried 1,000 miles of power lines, reducing costs by $1 million per mile compared to initial projects [5] - Ignitions were down 35% year-over-year due to layers of protection and technology [6] Data Center & Load Growth - PG&E's service area is experiencing load growth due to increased compute demand from AI, which is being priced appropriately so residential customers are not subsidizing large loads [8][10] - The company has a site in Woodland prepared for up to 1 gigawatt of data center load, but most applications are for 100 megawatts, described as "Goldilocks load" [13] - Compute data centers are distributed throughout PG&E's service area, supporting companies like PayPal, Zoom, and Netflix [11] Nuclear Energy & Diablo Canyon - Diablo Canyon nuclear plant provides approximately one-ninth (11%) of California's daily power production [14] - PG&E has a 5-year extension from the state for Diablo Canyon and has received a 20-year operating permission from the Nuclear Regulatory Commission, conditional upon final state permits [15] - Legislative action will be necessary to extend the operation of Diablo Canyon beyond the initial 5-year extension [16][17]

We're very pleased to be joined here at the EEI Financials Conference, the Edison Electric Institute. Big conference in Hollywood, Florida with Drew Maloney. He is the CEO of the Edison Electric Institute.Drew, thanks for having us here at your conference. >> Ryan, great to be here. >> Looks looks amazing.A record attendance. >> Record attendance. >> Lots of investment bankers, lots of financial activity.I've seen some of the numbers, but on a on a broad scale, give us some of the big numbers in terms of gr ...

Core Insights - Duke Energy is focused on supporting the growth of AI companies by enhancing the speed of power delivery and building transmission lines more efficiently [3][4][5] - The company has secured a significant deal with Amazon, involving a $10 billion investment in Richmond County, North Carolina, which is expected to create 500 jobs [5][6] - Duke Energy is committed to ensuring that the costs associated with serving large clients like Amazon do not burden the broader customer base, implementing special contract terms to protect existing customers [8][9] Company Strategy - Duke Energy aims to facilitate the AI boom by improving infrastructure and power delivery speed, which is crucial for attracting tech companies [3][12] - The company is constructing 7.5 gigawatts of new gas-fired power plants in North Carolina, leveraging existing gas pipelines to ensure reliability and affordability for new customers [13] Economic Impact - The Amazon deal represents the largest investment in North Carolina's history, highlighting the state's attractiveness for business and potential for economic growth [5][6] - The influx of data centers and tech companies is expected to contribute to a reduction in fixed costs for all customers over time, as these companies will help share the financial burden [11]

Yeah, I mean it's the 60th year of this conference. Morgan, thank you very much. First time that CNBC has been here because so much attention now is around electric and utility and this thing called AI, which apparently we've talked about a few times.We're pleased to be joined now by John Ketchum of Next Area Energy. First interview, by the way, since you guys announced that massive 25-year partnership with Google to restart the Dwayne Arnold nuclear facility in Iowa. So, John, great time to talk to you.Tha ...

Core Insights - NextEra Energy has announced a significant 25-year partnership with Google to restart the Dwayne Arnold nuclear facility in Iowa, which has been shut down for five years, indicating a strategic move towards enhancing energy production and collaboration in advanced nuclear technology [1][2][5]. Economic Impact - The partnership is projected to generate an economic impact of $9 billion and create approximately 2,000 jobs in Cedar Rapids, Iowa, highlighting the positive implications for local economies [2]. Earnings and Financials - The project is expected to be accretive to earnings, contributing an estimated 16 cents to adjusted earnings per share (EPS) for NextEra Energy, reflecting a positive financial outlook for the company [3][4]. Market Position and Strategy - NextEra Energy is recognized as the largest power producer in the United States and is actively investing over $100 billion in capital expenditures across various energy sectors, including gas-fired generation, nuclear restart, renewables, and energy storage [8][9]. Renewable Energy Growth - The company maintains a strong growth trajectory in its renewable energy sector, emphasizing the need for a diverse energy mix that includes renewables, gas, and nuclear technologies to meet increasing power demands [10][11]. Industry Collaboration - NextEra Energy is collaborating with Google on a national level regarding advanced nuclear technology, indicating a trend towards partnerships in the energy sector to leverage technological advancements [5].

Core Insights - ComEd has been ranked number one in the U.S. for providing reliable electric service, with significant improvements in outage frequency and duration [1][2] - Since 2012, ComEd has enhanced overall reliability by over 57%, preventing nearly 24.7 million customer interruptions and saving more than $4.3 billion in outage-related costs [2] Group 1: Reliability Metrics - ComEd's outage frequency has improved by more than 50% compared to 2012 and earlier [1] - The duration of outages has decreased by approximately 20% over the same period, resulting in shorter service interruptions for customers [1] Group 2: Company Background - ComEd is a subsidiary of Exelon Corporation, serving over 10.5 million electricity and natural gas customers, making it the largest utility in the U.S. [4] - ComEd provides power to more than 4.2 million customers in northern Illinois, representing 70% of the state's population [4] Group 3: Investment and Strategy - The improvements in reliability are attributed to targeted investments aimed at addressing challenges such as extreme weather, increasing load demands, and cybersecurity [2] - ComEd's ongoing commitment to enhancing grid reliability is reflected in its strategic initiatives to meet the growing electrification needs of its customers [2]

Core Insights - The current hype surrounding artificial intelligence (AI) is reminiscent of past trends in crypto, cannabis, and 3D printing, where many become instant experts without deep understanding [2][3] - KKR emphasizes that while there may be bubbles in certain AI-related sectors, the infrastructure needed for AI is a multi-trillion-dollar opportunity that will grow over decades [6][7] Infrastructure and Investment Opportunities - The capital committed to AI-related infrastructure is approximately 5% of U.S. GDP and is growing at high single- to low double-digit rates, with global data-center capital expenditure needs approaching several trillion dollars by the end of the decade [7][8] - The current AI expansion is compared to historical industrial revolutions, with the primary bottleneck being power, land, and infrastructure rather than capital [8][9] Key Players in the AI Buildout - **Digital Realty Trust (NYSE: DLR)**: A leading global data-center platform with the necessary scale, land, and connectivity to support AI tenants, ensuring long-term contracts with strong customers [18][19] - **NRG Energy (NYSE: NRG)**: Positioned to benefit from the demand for firm power as data centers require significant electricity to operate [22] - **Prologis (NYSE: PLD)**: A logistics REIT that is also a major landholder with zoning and power access ideal for data-center development, already controlling suitable sites [23][24] - **Quanta Services (NYSE: PWR)**: Focused on rebuilding the U.S. grid infrastructure, essential for supporting the growing demand for AI and data centers [26] Long-term Perspective - The AI revolution will be defined by the foundational infrastructure rather than the flashy applications, with capital flowing into the companies that build, power, and connect these facilities [27][28]

Duke has spoken with private credit providers about financing pieces of its $87 billion capital plan in what would be a first for utilities https://t.co/TCcfJOJ6Bj ...