Nov 14 (Reuters) -

Talen Energy ( TLN ) is pursuing another chance to convince

regulators to approve its agreement to supply more electricity

to an Amazon ( AMZN ) data center connected to Talen's nuclear power

plant in Pennsylvania, company executives said on Thursday.

The Federal Energy Regulatory Commission this month

struck down

the deal to increase the capacity of the data center at

Talen's Susquehanna plant to 480 megawatts from 300 megawatts,

noting that

diverting power to a single customer could raise power

bills in the region and cause grid reliability problems.

Building data centers on power plant sites, in an

arrangement known as co-location, gives Big Tech a fast track to

access large amounts of electricity to expand data centers

instead of waiting for years to connect to the broader grid.

Power consumption is expected to reach record highs in 2024

and 2025 due to surging demand from data centers used for

technologies like artificial intelligence.

"We are exploring a whole suite of commercial and legal

solutions to facilitate full development of the Susquehanna

campus as well as progressing other opportunities across our

fleet," Talen CEO Mark McFarland said on a company earnings

call. "This includes filing a motion for FERC rehearing in

parallel with AWS contract discussions."

Talen sold its data center campus to Amazon ( AMZN ) earlier this

year for $650 million under an agreement that the power capacity

could eventually reach 960 megawatts, enough electricity to

power all the homes in Philadelphia.

The company also said it was considering other options

to increase its power supply to Amazon ( AMZN ), including submitting a

revised amended interconnection service agreement.

Talen beat Wall Street estimates for third-quarter core

profit on Thursday, helped by higher electricity rates and

resilient demand for power.

Talen posted adjusted earnings before interest, taxes,

depreciation and amortization of $230 million for the three

months ended Sept. 30, compared with analysts' average estimate

of $212.9 million, according to data compiled by LSEG.