U.S. regulators reject nuclear power agreement with Amazon, multiple nuclear power stocks face a "bloodbath"
The Federal Energy Regulatory Commission (FERC) rejected an interconnection agreement with Amazon's data center, leading to significant declines in several nuclear power stocks. Talen Energy's stock fell 14% in pre-market trading, Constellation Energy dropped by as much as 13.15%, and Vistra Energy decreased by 7.8%. FERC commissioners stated that the deal could increase electricity costs and affect grid reliability. Talen Energy indicated that it is evaluating various options and believes that the revised proposal is in the best interest of consumers
According to Zhitong Finance APP, influenced by the Federal Energy Regulatory Commission (FERC) rejecting the interconnection agreement with Amazon (AMZN.US) data centers, Talen Energy (TLN.US) saw its stock price drop 14% in pre-market trading on Monday. Commission members stated that this deal could increase public electricity rates and affect grid reliability.
It is reported that the revised interconnection agreement is expected to provide more power from Talen Energy's Susquehanna plant to Amazon's data centers located at the Pennsylvania nuclear power station.
FERC Commissioner Mark Christie stated, "The co-location arrangement proposed here raises a series of complex, nuanced, and multifaceted issues that could have a significant impact on grid reliability and consumer costs."
As a result, other nuclear power companies also saw their stock prices decline, with Constellation Energy (CEG.US) dropping as much as 13.15% in pre-market trading, Vistra Energy (VST.US) down 7.8%, Public Service Enterprise Group (PEG.US) down 4.18%, while Talen Energy plummeted over 15% at one point.
In response to the ruling, Talen Energy stated that it is evaluating various options, focusing on commercial solutions, "We believe the ISA amendment is fair and reasonable and serves the best interests of consumers."
The proposal aims to modify the interconnection service agreement between PJM, the grid operator, the owner of the Susquehanna Nuclear power plant, and the interconnection transmission owner PPL, which aims to increase the co-located load of the data center from 300 megawatts to 480 megawatts