Aug 2 (Reuters) - Talen Energy Corporation (TLN.O) , opens new tab said on Friday it would work with utility companies, PJM Interconnection, and PPL Electric Utilities Corporation to respond quickly to a question from the Federal Energy Regulatory Commission.

FERC, the federal agency that oversees interstate power transmission, sent a letter earlier on Friday stating that PJM's request to change an agreement involving the utility, Susquehanna Nuclear, and PPL Electric Utilities is incomplete.

The regulator said it would need more information before it can process this request.

On June 3, PJM Interconnection, the largest U.S. power grid operator, submitted an amended Interconnection Service Agreement to FERC to increase the load at Talen's co-located data center at the Susquehanna nuclear power plant from 300 MW to 480 MW.

Talen, an independent power producer, had said in March that it had agreed to sell its co-located data center and as much as 960 megawatts of capacity, to Amazon Web Services.

Building data centers on the same premises as power plants can enable quicker operational startup compared to building them on the utility side of the grid, as it eliminates the wait times associated with large-scale transmission and distribution.

Talen's interconnection agreement has been challenged by regulated electric utilities including American Electric Power (AEP.O) , opens new tab and Exelon (EXC.O) , opens new tab, who have requested a hearing from FERC to thoroughly examine or possibly reject Talen's interconnection agreement with Amazon (AMZN.O) , opens new tab.

They have argued that the agreement for the data center might lead to an annual cost shift of $140 million to regular ratepayer's.

Talen, which owns and operates Susquehanna Nuclear, said it expects the commission to find the amendments will "not negatively impact system-wide reliability."

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https://www.reuters.com/business/energy/talen-energy-respond-regulator-seeks-details-proposed-changes-2024-08-02/