Constellation Energy seeks grid tariff rules for co-located data centers
Nov 26 (Reuters) -Constellation Energy CEG.N has called on the nation's largest grid operator to include in its tariff rules guidance for interconnected electricity suppliers to follow when supplying to data centers located next to power plants.
In a complaint filed against PJM Interconnection with the Federal Energy Regulatory Commission on Friday, Constellation alleged that some local utilities are using the lack of such rules to thwart competition from power generators by opposing the so-called co-located data centers.
The federal regulator earlier in November had rejected an agreement to increase the power capacity of a data center connected directly to a nuclear plant in Pennsylvania, citing risks to grid reliability and a rise in costs for consumers.
Constellation, which is the largest operator of U.S. nuclear power plants, had backed Talen Energy TLN.O in that regulatory battle.
Connecting large data centers directly with power plants has emerged as a major priority for Big Tech's plans to quickly access large amounts of power for its AI expansion instead of waiting for years to connect to the grid.
Constellation also said utility firm Exelon EXC.O, its former parent, refusing to finish interconnection work at the LaSalle nuclear plant to support co-location of a data center could add $15 million to $19 million in costs.
PJM, Constellation and Exelon did not immediately respond to requests for comment.
A time-consuming complaint would prove to be negative for the power companies, Jefferies analysts said in a note.
Reporting by Sourasis Bose in Bengaluru; Editing by Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
