Independent Power Producers: Sparks & Quarks — CEG Inks 20-Year PPA With AMZN; FERC Filing Introduces Uncertainty Around RBP Timeline; IPPs Lead

Sentiment check: CEG inks 20-year PPA with AMZN; FERC RBP auction delay top of mind. After market close, CEG announced a 20-year PPA with AMZN for 690MW at the Calvert Cliffs Clean Energy Center, including a 190MW uprate entering service between 2030-2032. We see the deal as a notable win, catching the market by surprise and demonstrating a contracting path forward despite regulatory uncertainty. IPPs sold off Wednesday after FERC's Tuesday night filing, effectively delaying PJM's RBP. In the filing, FERC accepts PJM's RBP proposal for filing but suspends it for five months (to Feb 28, 2027), flagging cost allocation, Transmission Owner exit rules, and LSE collateral requirements as unjust/reasonable. PJM can avoid an extended paper hearing if it addresses FERC's concerns and modifies its proposal within 30 days. While the filing comes largely unexpected, we continue to believe IPPs stand well positioned to benefit from higher power prices or PPA signings over time. Twelve PJM utilitie