GE Vernova (NYSE:GEV) shares climbed 3.7% in pre-market trading on Friday following reports that President Donald Trump and governors from states within the PJM Interconnection footprint are set to unveil plans for an emergency wholesale electricity auction aimed at shoring up power reliability and controlling costs.
According to a White House official cited by Bloomberg, the proposed auction would require technology firms to help finance new power plants through 15-year contracts, potentially enabling the construction of roughly $15 billion in new generation capacity.
The initiative comes as rapid data center expansion strains the regional grid. The plan would introduce two-year price caps on future auctions within the PJM system, which serves around 67 million people across mid-Atlantic and inland states. It would also shift a greater share of grid expansion costs onto new data center operators such as Amazon and Google.
Analysts at Jefferies described GE Vernova as the “clearest winner” from the proposal, while also pointing to potential upside for NRG Energy (NASDAQ:NXXT), PPL Corp (NYSE:PPL), NextEra Energy (NYSE:NEE), Primoris, Quanta (NYSE:PWR), and Williams (NYSE:WMB).
Jefferies estimates the auction could deliver between 5 and 7.5 gigawatts of new capacity at a cost of roughly $2,000 to $3,000 per kilowatt. The firm noted that whether developers opt for peaker plants or combined-cycle facilities would carry different consequences for energy and capacity pricing.
On the other hand, existing power generators could face headwinds. Shares of Constellation Energy fell 4.8% in pre-market trading, while Vistra declined 3.7%. Jefferies said these companies, along with Talen Energy and Capital Power, may be disadvantaged as increased market intervention makes it harder to contract existing facilities.
The agreement is expected to be signed Friday at the White House by governors from PJM states, including Democrats Josh Shapiro of Pennsylvania and Wes Moore of Maryland, as well as Republicans Mike DeWine of Ohio and Glenn Youngkin of Virginia.
A spokesperson for PJM Interconnection, Jeffrey Shields, said the grid operator was not invited to the event and would not be in attendance.