Morgan Stanley sees Talen-Amazon power deal's final decision in second-half of Oct

PPL

06/08/2024 18:14

** Morgan Stanley Research says Federal Energy Regulatory
Commission's (FERC) decision on Talen Energy  TLN.O  powering
Amazon's  AMZN.O  data center to be reached by mid-October
    ** Talen announced in March it had entered into an agreement
to sell electricity and a data center campus located at its
Pennsylvania nuclear power plant to Amazon Web Services
    ** Utilities like American Electric Power  AEP.O  and Exelon
 EXC.O  asked FERC to hold a hearing to scrutinize the
agreement, saying it could cost customers $140 mln per year 
    ** On Aug. 2 FERC issued to TLN, PJM Interconnection and PPL
 PPL.N  a deficiency letter asking for more information on the
deal 
    ** Morgan Stanley Research analysts highlight that "FERC
didn't take issue with any of the provisions, and didn't bringup
the many protests submitted by EXC/AEP"
    ** "With the steps taken by FERC we are feeling more
comfortable that the regulatory risk is manageable and future
deals could move forward soon" - Morgan Stanley Research
analysts  
    ** "We also think it's possible other deals don't wait for
the outcome of this proceeding and get announced in the interim,
particularly given rising power prices and capacity prices even
before data centers are coming to the region at scale"

    
    

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))