AEP, Exelon challenge PJM interconnection pact for Amazon data center at Talen nuclear plant

| Source: Utility DIVE | Posted 06/27/2024

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If FERC declines to hold a hearing, the agency should reject the non-conforming interconnection service agreement, or ISA, between the PJM Interconnection, Susquehanna Nuclear and PPL Electric Utilities, in part because it would allow the data center to take advantage of PJM’s transmission system without paying for it, according to the protest filed Monday at FERC. The ISA could shift up to $140 million in transmission costs onto other PJM customers, AEP and Exelon said.

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American Electric Power and Exelon are raising concerns over a proposed agreement allowing the co-location of an Amazon data center at Talen Energy's Susquehanna nuclear plant in Pennsylvania, warning of potential cost shifts onto utility customers. The Federal Energy Regulatory Commission is being urged to hold a hearing on the matter, with AEP and Exelon arguing that the agreement could result in up to $140 million in transmission costs being shifted to other PJM customers.

Talen Energy's plan to sell a data center campus to Amazon's cloud computing unit, Amazon Web Services, for $650 million involves providing power from its stake in the nuclear power plant. With the data center possibly becoming the largest co-located load in North America, AEP and Exelon are contesting an ISA amendment that would allow power sales without transmission upgrades. They argue that the agreement could set a precedent affecting how regulators handle cost allocation and rate design for such arrangements.

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Source Link: https://www.utilitydive.com/news/aep-exelon-pjm-interconnection-amazon-data-center-talen-ferc-isa/719869/

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AEP, Exelon challenge PJM interconnection pact for Amazon data center at Talen nuclear plant

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