** Shares of U.S.-based utilities rose in 2024 with Vistra Corp VST.N gaining nearly 260% YTD and Constellation Energy CEG.O 91.3% YTD

** VST is the second biggest gainer in the S&P 500 .SPX, higher than A.I. favorite Nvidia NVDA.O

** Utility gains this year has been helped by a surge in demand for power for growing artificial intelligence needs and data center expansions

** Utilities are often referred to as "bond proxies," for their strong, stable dividends that compete with Treasury yields

** In September, CEG and Microsoft MSFT.O had signed a power deal to help resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania

** Public Service Enterprise PEG.N up 37.6% YTD and NiSource NI.N up ~38% YTD

** "Sector strength in 2024 has been underpinned by stabilizing rates and inflationary expectations throughout the year, greater uncertainty created by the election cycle for many non-utility sectors," said KeyBanc Capital Markets earlier in December

** Brokerage said the growing realization among investors that AI-driven electricity demand is not a fad has been translated into tangible load growth and earnings per share growth target revisions

** NextEra Energy NEE.N and Evergy EVRG.O also up ~18% YTD and 17.3% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))