Talen Energy down after agency rejects Amazon data center agreement

Public Service Enterprise

04/11/2024 10:27

** Shares of Talen Energy  TLN.O  down 14.3% to $149.02
premarket 
    ** The Federal Energy Regulatory Commission (FERC) on Friday
rejected an amended interconnection agreement for an Amazon data
center connected directly to a nuclear power plant in
Pennsylvania
    ** News weighs on other nuclear-power utilities: Vistra
 VST.N  down 5.9%, Constellation Energy  CEG.O  falls 7.8%, and
Public Service Enterprise  PEG.N  drops 3.8% 
    ** Brokerage Jefferies in a note on Sunday said rejection
likely results in TLN and Amazon pursuing a new path rather than
agreement via FERC
    ** "Out of the four IPPs, we still see the most value
potential from Talen, assuming that Amazon still opts to move
forward with its data center efforts at Susquehanna" - Jefferies
    ** Says data centers make up 17% of their valuation for co,
44% for CEG, 22% for VST, and 8% for PEG

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