Regulated Utility Giants

• NextEra Energy (NEE)
  → Largest utility by market cap, big in renewables
• Duke Energy (DUK)
  → Massive regulated footprint in the Southeast
• Southern Company (SO)
  → Nuclear + gas heavy, large base load provider
• Dominion Energy (D)
  → Strong in mid-Atlantic, data center exposure (Virginia)
• Exelon (EXC)
  → Largest regulated transmission/distribution utility
• American Electric Power (AEP)
  → Transmission-heavy, now pushing into AI power

How they work

• Own:
  • Power plants
  • Transmission lines
  • Distribution networks
• Serve captive customers (homes, businesses)
• Prices are set by regulators

Economics

• Allowed to earn:
  • ~8–10% regulated return on capital
• Very stable, predictable cash flows

Key constraint

• ❗ Need regulatory approval for:
  • Building new plants
  • Raising prices
  • Large contracts

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Independent Power Producers (merchant / unregulated)

• Vistra (VST)
  → Large gas + nuclear + merchant power
• NRG Energy (NRG)
  → Competitive retail + generation
• Constellation Energy (CEG)
  → Largest nuclear fleet in U.S.

How they work

• Own generation assets only
• Do NOT own the grid
• Sell power into:
  • Wholesale markets
  • Bilateral contracts (PPAs)

Economics

• Prices are:
  • Market-driven or contract-driven
• Returns can be:
  • Much higher (or lower) than utilities

Key advantage

Price power flexibly

No regulator approval needed to:

1. Build new capacity (mostly)

2. Sign deals with data centers

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Transmission / Grid players

• AEP (again — very large transmission owner)
• PG&E Corporation (PCG)
• Edison International (EIX)