Power producer Vistra says it has not seen demand shift from Texas to PJM after US midterms

By Varun Sahay

Nov 6 (Reuters) - US power producer Vistra VST.N said on Friday demand from hyperscalers and other large-load customers remained strong and had not shifted from Texas to the PJM market after the recent US midterm elections.

The comments come as investors assess the potential impact of increased scrutiny of large electricity users seeking connections to the Texas grid, a key destination for artificial-intelligence and data-center investment.

"We're in active discussions with large-load customers in both PJM and ERCOT on existing and new-build assets," CEO Jim Burke said on a post-earnings conference call.

Shares of the company were up 10.2% in afternoon trading.

Vistra said it was in talks for power-purchase agreements at existing gas-fired plants and for new gas-build projects, while executives said they remained confident of signing additional nuclear-power agreements.

Burke said election clarity could help move projects forward after months of regulatory and political uncertainty.

"I actually view where we sit today as just clarity of some sort," Burke said. "It's going to be beneficial to taking some of the noise out."

Executives also said some customers were increasingly willing to pursue more expensive behind-the-meter power arrangements while awaiting grid connections.

Texas regulators have been reviewing large-load interconnection requests as policymakers seek to ensure new projects do not increase costs for existing customers or strain grid reliability.

Vistra reported a third-quarter adjusted core profit of $2.38 billion, above analysts' average estimate of about $2.1 billion, according to LSEG data.