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US FERC rejects Amazon-Talen nuclear deal

Posted on by Kennedy
US FERC rejects Amazon-Talen nuclear deal

The financial responsibility for modernizing the transmission and distribution networks remained unclear. Photo credit: bluestork/Shutterstock.

The US Federal Energy Regulatory Commission (FERC) has rejected an amended interconnection services agreement that would increase the utilization capacity of Amazon's data center at the Susquehanna nuclear power plant in Pennsylvania.

The amended agreement was signed between Talen Energy, PJM Interconnection and PPL Electric Utilities and sought to increase capacity at Susquehanna from 300 MW to 480 MW.

FERC was concerned about the agreement's potential impact on the public, as increased data center capacity could lead to higher electricity bills and impact the reliability of the network.

The regulator pointed out that diverting large amounts of electricity from the regional grid could lead to a supply outage, affecting electricity costs and grid stability.

Financial responsibility for the necessary transmission and distribution upgrades remained unclear.

FERC Commissioner Mark Christie stated, “Co-location arrangements of the type presented here present a number of complicated, nuanced and multifaceted issues that, in aggregate, could have enormous impacts on both grid reliability and consumer costs.”

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“In fact, this commission has already recognized the importance and complexity of these issues, which is why we held a technical conference to examine them.”

Talen Energy responded: “The decision will have a chilling effect on economic development in states such as Pennsylvania, Ohio and New Jersey.”

In May 2024, US utility CPS Energy completed the acquisition of three natural gas power plants in Texas from Talen for $785 million.

The acquisition had a total capacity of 1.7 GW and included the 897 MW Barney Davis and 635 MW Nueces Bay natural gas generation facilities in Corpus Christi and a 178 MW facility in Laredo.


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