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Political pressure on electricity rates creates uncertainty for utility stocks in 2026, despite the sector delivering 16% returns so far this year driven by AI data center demand.
The PJM Interconnection power auction is expected to reach a record $17 billion to secure capacity for 2027, driven by soaring electricity demand from data centers.
The Federal Reserve's 25 basis point interest rate cut on December 10, 2025, has positioned the utilities sector for growth by lowering its target range to 3.50-3.75%.
Enphase Energy has expanded a safe harbor agreement with a third-party ownership (TPO) provider, securing future revenue for its U.S.-manufactured microinverters as the market braces for changes to residential solar tax credits. The stock saw a modest gain on the news.