AI Energy

$AIENERGY **September Rebalance Summary** **Removed:** - NEE 7% to 0. Intermittent power, wrong product for 24/7 load - EPD 6% to 0. Weakest link to the actual constraint **Increased:** - GEV 11% to 16%. Tightest bottleneck, backlog 83 to 116 GW - BE 4% to 8%. First $1B quarter, guidance to ~100% growth - ETN 10% to 12%, VRT 9% to 11%, WMB 6% to 8% **Trimmed:** VST 18% to 16%, hedged near 100% of 2026 output, which caps rent capture. CEG 19% and TLN 10% unchanged.

June Rebalance Summary The AI power trade is in a sharp pullback (GEV -5.3%, VST -5.2%, CEG -4.2% on June 10), but fundamentals are intact: record backlogs, reaffirmed guidance, PPAs holding. No roster changes. Weight shifts only, buying weakness in highest-conviction names: • CEG: 18% → 20% (near 52-wk low, Crane/TMI restart decision in Sept) • TLN: 9% → 10% (MS target $499, buybacks, new PJM assets cleared) • EPD: 5% → 6% (defensive yield) • GEV: 12% → 10% (Vineyard Wind dispute, insider selling, capex concerns) • BE: 7% → 5% (most extended, highest beta) • VST, VRT, ETN, NEE, WMB unchanged Watch for July: NRC comment window closes July 8, Crane decision in September, and rising state-level resistance to data center construction, the new regulatory risk.

Cutting ETR, NI, PPL, and IDA — regulated utilities with weak direct AI exposure that were crowding out higher-conviction names. Adding 5 high-conviction AI infrastructure plays: • VST (16%) AWS + Meta nuclear PPAs • GEV (12%) gas turbines, $2B+ data center orders • VRT (10%) liquid cooling, 30% Q1 growth • ETN (10%) switchgear, 11-yr backlog • BE (7%) Oracle’s 2.8 GW fuel cell deal Boosting CEG to 18% (anchor post-Calpine, 55 GW) and keeping TLN, NEE, WMB, EPD trimmed.