08:28 AM EDT, 07/08/2024 (MT Newswires) -- (Adds company comment in seventh paragraph)

Talen Energy has asked US regulators to dismiss a challenge from a group of electric utilities, including American Electric Power ( AEP ) and Exelon ( EXC ) , for its recent agreement with Amazon ( AMZN ) for a data centre, Reuters reported on Friday, citing the company's filing with the Federal Energy Regulatory Commission.

Talen Energy asserted that the claims regarding its Amazon ( AMZN ) data center deal to increase power costs for utility customers or grid reliability issues are inaccurate, Reuters reported.

"It is an unlawful attempt to hijack this limited interconnection service agreement amendment proceeding that they have no stake in and turn it into an ad hoc national referendum on the future of data center load," Talen said in its filing, according to the report.

The report added that Talen has warned that if FERC grants the groups' request or rejects their plan, it could stifle data center growth and deter new power plant construction.

The company's agreement with Amazon ( AMZN ), announced in March, involves selling electricity and a data center site at its Pennsylvania nuclear plant, which can provide up to 960 megawatts of power, the report said.

The timing of FERC's decision on the matter remains uncertain.

A Talen Energy spokesperson told Reuters that the company does not believe Exelon ( EXC ) and AEP are the proper parties to complain or that the complaints have any merits based on facts or law.

Amazon ( AMZN ) didn't immediately responded to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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