Latest news with #TalenEnergy
The Independent
a day ago
- Business
- The Independent
Amazon to spend $20 billion on data centers in Pennsylvania, including one at a nuclear power plant
Amazon said Monday that it will spend $20 billion on two data center complexes in Pennsylvania, including one it is building alongside a nuclear power plant that has drawn federal scrutiny over an arrangement to essentially plug right into the power plant. Kevin Miller, vice president of global data centers at Amazon's cloud computing subsidiary, Amazon Web Services, told The Associated Press that the company will build another data center complex just north of Philadelphia. The announcements add to the billions of dollars in Big Tech 's data center cash already flowing into the state. Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its investment in infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products. The rapid growth of cloud computing and artificial intelligence has fueled demand for data centers that need power to run servers, storage systems, networking equipment and cooling systems. The majority owner of the Susquehanna nuclear power plant, Talen Energy, announced last year that it had sold its data center to Amazon for $650 million in a deal to eventually provide 960 megawatts. That's 40% of the output of one of the nation's largest nuclear power plants, or enough to power more than a half-million homes. However, the arrangement between Talen and Amazon — called a 'behind the meter' connection — has been held up by the Federal Energy Regulatory Commission in the first such case to come before the agency. It has raised questions over whether diverting power to higher-paying customers will leave enough for others and whether it's fair to excuse big power users from paying for the grid. ___
Associated Press
a day ago
- Business
- Associated Press
Amazon to spend $20 billion on data centers in Pennsylvania, including one at a nuclear power plant
HARRISBURG, Pa. (AP) — Amazon said Monday that it will spend $20 billion on two data center complexes in Pennsylvania, including one it is building alongside a nuclear power plant that has drawn federal scrutiny over an arrangement to essentially plug right into the power plant. Kevin Miller, vice president of global data centers at Amazon's cloud computing subsidiary, Amazon Web Services, told The Associated Press that the company will build another data center complex just north of Philadelphia. The announcements add to the billions of dollars in Big Tech's data center cash already flowing into the state. Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its investment in infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products. The rapid growth of cloud computing and artificial intelligence has fueled demand for data centers that need power to run servers, storage systems, networking equipment and cooling systems. The majority owner of the Susquehanna nuclear power plant, Talen Energy, announced last year that it had sold its data center to Amazon for $650 million in a deal to eventually provide 960 megawatts. That's 40% of the output of one of the nation's largest nuclear power plants, or enough to power more than a half-million homes. However, the arrangement between Talen and Amazon — called a 'behind the meter' connection — has been held up by the Federal Energy Regulatory Commission in the first such case to come before the agency. It has raised questions over whether diverting power to higher-paying customers will leave enough for others and whether it's fair to excuse big power users from paying for the grid. ___ Follow Marc Levy on X at:
Forbes
6 days ago
- Business
- Forbes
Constellation Energy Stock Up On Meta Deal. More AI Energy Plays Ahead
Big tech's appetite for energy could means upside for nuclear power stocks ETTERS, PENNSYLVANIA - SEPTEMBER 21: The Three Mile Island Nuclear Plant is seen on September 21, ... More 2024 from across the river in Etters, Pennsylvania. Microsoft and Constellation Energy reached a deal that would restart Unit 1 of the Three Mile Island Nuclear plant, which was previously retired in 2019. (Photo by) Data center demand for energy could grow 160% by 2030, according to Goldman Sachs. Constellation Energy runs nuclear power plants that big tech companies are using to run AI chatbots. Since last September, Constellation Energy stock has risen, fallen, and recovered. Talen Energy — which struck a deal now in limbo with AWS — could also benefit from this demand. Shares of Constellation Energy — which contracted to provide Microsoft nuclear power from Three Mile Island, as I wrote in a September 2024 Forbes post — have risen 29% this year, according to GoogleFinance. Will the stock price rise further? There are two reasons to consider doing so: I would hesitate to buy Constellation Energy because the shares have been volatile and analysts estimate they are somewhat overvalued. "It's clear that we're in a whole new ball game on cost," Constellation CEO Joseph Dominguez said on a company earnings call last month, reported Reuters. 'Certain natural gas plant builds, for example, have tripled in cost over the last decade in some cases,' he added. Nevertheless, demand for nuclear power is likely to grow and other providers — such as PacifiCorp — may be worth considering. Generative AI fueled significant demand for energy in 2024 and is likely to grow considerably by 2028. Last year data centers used 200 terawatt-hours of energy — between 27% and 38% of which powered AI-specific servers, according to the Department of Energy. That is about the amount of power Thailand uses in a year, noted the DOE. By 2028, much more energy will go to data centers. Between 2024 and 2028, data center consumption of U.S. electricity may triple, from its current 4.4% to 12%, DOE notes. AI's share of that energy will rise substantially. Between 2024 and 2028, the power going to AI-specific purposes will rise at a 32.6% average annual rate to 244 terawatt-hours per year — the midpoint of a forecast range between 165 and 326 terawatt-hours per year, DOE estimated. Nuclear energy accounts for a fraction of the U.S. energy supply but that is expected to grow in the future. Today, only 20% of electricity here comes from nuclear — representing 'a fraction of AI data centers' operations,' reported MIT Technology Review. While Meta, Amazon, and Google have joined a pledge to triple the world's nuclear capacity by 2050, additional nuclear capacity could take 'years, perhaps decades, to materialize,' MIT Technology Review noted. Last September, Constellation Energy announced a deal to supply nuclear energy to Microsoft — and on June 3, Meta inked a very different nuclear deal, according to CNBC. Constellation — which owns the Three Mile Island facility in Pennsylvania that suffered an accident in March 1979 — signed a 20-year agreement for Microsoft to pay the nuclear energy leader about $16 billion, last September, noted my Forbes column. This week Meta signed a 20-year agreement to buy 'about 1.1 gigawatts of nuclear power from Constellation's Clinton Clean Energy Center in Illinois,' beginning in 2027, CNBC reported. While terms of the deal were not disclosed, Meta will not use the power for its data centers. Instead, Constellation — which will expand Clinton's output by 30 megawatts — will keep supplying the power to the regional grid while contributing to Meta's 'goal of 100% clean electricity,' wrote CNBC. Before Meta's commitment, Clinton was at risk of closing in 2027 when its zerio emissions credit expires. 'We are proud to partner with Meta,' Constellation's president and CEO Joe Dominguez told CNBC. 'They figured out that supporting the relicensing and expansion of existing plants is just as impactful as finding new sources of energy. Sometimes the most important part of our journey forward is to stop taking steps backwards,' he added. Meta also expressed enthusiasm for this arrangement. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' Meta head of global energy Urvi Parekh said. 'We are proud to help keep the Clinton plant operating for years to come and demonstrate that this plant is an important piece to strengthening American leadership in energy.' It is not all good news for Constellation investors. The company's stock rose sharply on the announcements of these deals — yet it has fallen after recent earnings reports. Moreover, analysts view the stock as somewhat overvalued. For example, after the September 20 announcement of its deal with Microsoft, the stock rose 22%, according to SeekingAlpha. Moreover, the deal with Meta propelled Constellation's shares up 15%. However, Constellation has lost value after recent earnings reports disappointed investors. For the June 2024-ending quarter, the company fell short of earnings and revenue expectations, noted by Forbes post. While the company's third-quarter profit and revenue that beat expectations, for the first time in more than a year, and nudged up its full-year outlook, its stock price fell after a disappointing regulatory ruling, according to MarketWatch. To be sure, Constellation's fourth quarter 2024 report was better than expected for revenue and operating income — however, the stock lost about a third of its value in the six weeks following the report. Finally, Constellation stock fell in May after reporting disappointing earnings for the March 2025-ending quarter. Rising costs to build and operate its electricity infrastructure caused the major U.S. power company to miss Wall Street expectations for first-quarter profit, noted Reuters. Wall Street considers the stock slightly overvalued. Based on 12 Wall Street analysts offering 12 month price targets, Constellation Energy stock trades slightly above the average price target of $303.20, noted TipRanks. In March 2024, Talen Energy struck a deal to sell for $650 million its Cumulus data center — which is a adjacent to a Pennsylvania nuclear plant, reported Data Center Frontier — to Amazon Web Services. However, in November 2024, the Federal Energy Regulatory Commission ruled to block the deal due to uncertainty about whether it would boost electricity rates. If Talen can prevail over the FERC, its stock could potentially rise.
CBS News
27-05-2025
- Business
- CBS News
BGE customers can expect an electricity price increase on June 1. Here's why.
BGE customers will see another significant increase in the price of electricity starting June 1. The increase comes amid frustrations from BGE customers who have been grappling with high energy costs throughout the year. Why will electricity costs go up on June 1? According to BGE, the increase is a result of an unexpected spike in capacity auction prices, and the Talen Energy reliability-must-run (RMR) fee. What are capacity auction prices? A capacity market auction is a competitive bidding process where power companies promise to make their electricity generation available in the future. Last week, legislators criticized BGE, saying that the company was responsible for an energy supply undercount at the most recent auction, causing the total cost of electricity across the PJM region to go from $2.2 billion to $14.7 billion. BGE said Tuesday that the increase was not due to the company raising its distribution rate, but an increase in the price of "electricity itself". "It's like when gas prices go up—you're paying more for the gas you use, not more to the gas station for delivering it," a spokesperson for BGE said. What is the Talen Energy RMR fee? The Talen Energy RMR fee refers to the fixed payments made to Talen Energy for continuing to operate its Brandon Shores and H.A. Wagner power plants in Maryland, beyond their planned retirement dates. PJM Interconnection, the regional grid operator a fee of $312 per megawatt per day for the Brandon Shores plant, amounting to approximately $145 million annually, along with a $5 million performance incentive. For the H.A. Wagner plant, PJM pays a fee of $137 per megawatt per day, which totals about $35 million per year, plus a $2.5 million performance incentive. The details are outlined in a settlement agreement reached in January 2025. Maryland struggles with ongoing energy rate increases BGE raised rates on January 1, increasing the average residential gas bill by 9% and electric bill by 7%. Some customers saw even larger jumps, with winter bills climbing by more than $200. The utility cited several reasons for the hikes, including higher distribution costs regulated by the Maryland Public Service Commission (PSC), a 30% rise in natural gas prices over the past year, and increased spending on energy efficiency programs mandated by the state. BGE also pointed to major investments in gas infrastructure upgrades. Baltimore City Council President Zeke Cohen has raised questions about the company's long-term plans. Earlier this month, Cohen called for transparency around BGE's proposed multi-year rate increases for 2026. In 2023, the PSC approved BGE's multi-year delivery rate increases, enabling the company to raise rates by approximately $408 million over three years for both gas and electric services.
CBS News
21-05-2025
- Business
- CBS News
Maryland legislators ask federal regulators to stop impending energy rate hikes
Lawmakers, commissioners, ask feds to step in as BGE bills rise Lawmakers, commissioners, ask feds to step in as BGE bills rise Lawmakers, commissioners, ask feds to step in as BGE bills rise Maryland officials are pushing federal regulators to step in as Baltimore Gas and Electric customers face a $16 monthly bill increase starting June 1. In a letter, the Maryland General Assembly said it was writing to share "grave concerns" about PJM Interconnection is the region's power grid operator. PJM operates the power grid for 13 states including Maryland. The legislators argue that the cost increases slated to take place June 1 are a result of issues in PJM's most recent capacity market auction and inflated payments to Talen Energy for keeping its Maryland plants online. Most notably, they argue that the auction failed to include two active power plants in the Baltimore area, owned by Talen Energy, as part of the available electricity supply. A capacity market auction is a competitive bidding process where power companies promise to make their electricity generation available in the future. According to the legislators, the supply was undercounted - making it seem like less electricity was available, and causing the total cost of electricity across the PJM region to from $2.2 billion to $14.7 billion. "The Commission must act expeditiously to acknowledge and remedy the problems with last summer's auction that render the results unjust and unreasonable," the legislators wrote. Maryland continues push back against energy rate hikes BGE implemented a rate hike on January 1, 2025, that increased the average gas bill by 9% and electric bill by 7%. Many customers reported much larger spikes, with some seeing bill increase more than $200 during winter months. BGE attributes the increases to several factors, including distribution costs regulated by the PSC, a sharp 30% year-over-year rise in natural gas prices, increased costs for the state-mandated "Empower Maryland" energy efficiency program, and massive spending on gas infrastructure upgrades. Multi-year rate hike plan Earlier this month, Baltimore City Council President Zeke Cohen called for transparency over decisions made on the future of BGE's proposed multi-year rate hikes for 2026. In a letter, Cohen said Calvin Butler, CEO of BGE's parent company Exelon, stated that they are anticipating a decision on the "lessons learned" about BGE's rate hikes by the end of the second quarter. If the timeline is accurate, Cohen said he remained extremely concerned that Exelon has access to sensitive information that is not shared with the public, and that the PSC should investigate how the timeline was potentially shared outside the commission and its staff. The Maryland Public Service Commission approved BGE's multi-year delivery rate hikes in 2023, authorizing a total increase of just under $408 million over three years for both gas and electric services.
