Notes from recent Odd Lots discussion with CreditSights analyst on utility issues in AI buildout:

3/ Utilities' inventive is to claim higher demand: transmission, substations, and rate base all boost allowed earnings. That drives overbuild risk. if real power use disappoints, utilities lose the AI growth narrative and go back to being slow-growth, regulated, interest-rate-sensitive businesses.

https://www.bloomberg.com/news/articles/2026-02-02/are-we-building-more-ai-datacenters-than-we-need