Energy regulators on Friday rejected an amended interconnection agreement for an Amazon (AMZN) data center with a nuclear power plant run by Talen Energy (TLN). Talen stock plunged Monday morning while Constellation Energy (CEG), Vistra (VST) and some other nuclear plays also lost ground.
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The Amazon data center is located right at the Susquehanna nuclear power plant in Pennsylvania. The amended interconnection deal would have supplied more power from Talon Energy’s Susquehanna plant to the data center. But the deal would have diverted power currently going to the general regional grid.
Federal Energy Regulatory Commission rejected the deal, citing possible “huge ramifications for both grid reliability and consumer costs,” FERC Commissioner Mark Christie.
Electric utilities, especially those with nuclear power plants have seen demand and prices soar amid energy-intensive AI data centers. The FERC order suggests that regulators, worried about the “ramifications,” may block or restrict even co-location deals.
Constellation Energy recently announced plans to reopen a shuttered unit of Three Mile Island, with a long-term deal to deliver all the power to Microsoft (MSFT). But the deal won’t divert existing power supplies.
Nuclear Stocks
Talon Energy stock dived 14.6% early Monday, signaling a move far below the 50-day moving average. TLN stock has a new consolidation with a 197.61 buy point.
Constellation Energy stock plunged 8.6%, signaling a move to around the 50-day line and the top of a prior consolidation.
Vistra stock shed 5.5%, toward the 50-day and a prior consolidation. VST stock initially rose a fraction Friday night on news that it will be added to the Dow Jones Utility Average on Nov. 8.
Vistra stock is the top performer in the S&P 500 in 2024, up 210.25%. Constellation Energy is in the top five, up 120.8%.
More-speculative nuclear plays Oklo (OKLO), NuScale Power (SMR) and Nano Nuclear Energy (NNE) all fell roughly 6%-7% in premarket trade.
Constellation Energy reports third-quarter earnings early Monday, with Vistra and NuScale Power due Thursday. Talon Energy and Oklo will report on Nov. 14.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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