New York, Jan 16, 2026, 10:56 a.m. EST — Regular session underway.
- Shares of Vistra dropped in early trading amid a broader slump in the independent power producer sector.
- A report on potential PJM auction price caps has reignited concerns over policy risks linked to data-center power demand.
- Traders await details from a White House event scheduled for later Friday, closely monitoring PJM’s reaction.
Shares of Vistra Corp slipped 6.8% to $167.91 in morning action, with Constellation Energy tumbling 9.6% and Talen Energy down 9.0%. These three have been seen as stand-ins for growing U.S. power demand linked to data centers and the rush for long-term contracts. Vistra hit a low of $163.37 after earlier peaking at $185.30. (Reuters)
This move hits right at the core of how investors have been valuing merchant generators. Rising forward power prices and capacity payments have fueled gains in stocks tied to tight grids and significant new demand.
In PJM, capacity auctions determine these payments — a forward market where generators receive compensation for being ready to supply power in the coming years. Shifts in auction prices can quickly alter earnings forecasts.
Governors from states within PJM’s territory are set to meet at the White House on Friday to sign a deal with the Trump administration focused on lowering electricity costs, according to a Reuters report citing two insiders. The agreement would impose two-year price caps on upcoming auctions and require new data center players like Amazon and Google to shoulder more of the grid expansion expenses, the report added. Senator Chris Van Hollen, who pushed the “Power for the People Act,” argued that consumers “shouldn’t have to foot the bill” for the data center expansions by major corporations. (Reuters)
Vistra has doubled down on the data-center play. In an 8-K filing dated Jan. 9, the company revealed it inked 20-year power purchase agreements, or PPAs, with Meta Platforms to provide 2,609 megawatts of carbon-free power and capacity from its PJM nuclear fleet, which includes Perry and Davis-Besse in Ohio and Beaver Valley in Pennsylvania. Deliveries will kick off with a portion in late 2026, Vistra said, reaching full output by the end of 2027. Uprate-related increases are set to roll out through 2034. (SEC)
Long contracts help shield against daily jolts from power price swings. Still, imposing a broad cap on auction prices would put a dent in the sector’s most optimistic forecasts and might temper how quickly investors factor in “AI load” growth as a steady climb.
On the flip side, policy moves that pass some costs to data center developers might ease political pressure on generators down the line. It could also speed up new supply—provided grid operators clear the way for quicker interconnection and fresh construction.
This isn’t settled yet—the next steps lie with regulators and PJM. Should the caps get eased, postponed, or face legal hurdles, stocks might rebound as fast as they fell. But if the limits become firm rules, traders will begin slashing earnings tied to capacity.
The focus now shifts to the White House event later Friday and whether PJM indicates plans to adopt the proposed changes. With U.S. markets closed Monday for Martin Luther King Jr. Day, Tuesday will be the earliest full session for investors to adjust their positions.
