Harrisburg, Pennsylvania – Energy regulators in Pennsylvania have rejected an amended interconnection agreement between an Amazon data center and a nuclear power plant operated by Talen Energy. This decision has had significant impacts on the stock prices of both Talen Energy and other related companies in the energy sector.

The Amazon data center at the Susquehanna nuclear power plant in Pennsylvania was set to benefit from an amended interconnection deal with Talen Energy. This deal would have provided more power from the Susquehanna plant to the data center, but at the expense of diverting power currently supplied to the general regional grid.

The Federal Energy Regulatory Commission (FERC) denied the agreement, citing concerns about potential repercussions on grid reliability and consumer costs. FERC Commissioner Mark Christie expressed worries about the implications of such deals on the energy landscape moving forward.

The rejection of this agreement comes at a time when electric utilities with nuclear power plants are experiencing increased demand and rising prices due to the energy needs of AI data centers. The FERC order indicates that regulators are taking a cautious approach to these types of arrangements to safeguard grid reliability and control consumer costs.

Other companies in the nuclear energy sector, such as Constellation Energy and Vistra, have also been impacted by the regulatory decision. Constellation Energy recently announced plans to reopen a unit at Three Mile Island to supply power to Microsoft, but without diverting current power sources.

The stock prices of Talen Energy, Constellation Energy, and Vistra have all seen fluctuations in response to the regulatory developments. Talen Energy’s stock dropped significantly, while Constellation Energy and Vistra also experienced declines in the market.

Overall, the regulatory decision has raised questions about the future of energy agreements between data centers and nuclear power plants. It reflects a broader trend of regulatory scrutiny in the energy sector as companies navigate the evolving landscape of energy consumption and distribution.

Investors and stakeholders in the energy industry will be closely monitoring how companies adapt to the changing regulatory environment and the implications for their business operations. The rejection of the interconnection agreement underscores the importance of balancing energy needs with grid reliability and consumer affordability in the pursuit of sustainable energy solutions.