The Federal Energy Regulatory Commission (FERC) has rejected a proposed interconnection service agreement (ISA) for the Susquehanna nuclear power station in Luzerne County, Pennsylvania. The agreement would have supported an expanded colocated load at an Amazon Web Services (AWS) data center connected to the 2.5GW plant, enabling it to serve the data center behind the meter.
In rejecting the amended proposal, FERC stated that PJM had not provided sufficient justification for the nonstandard provisions that would allow a “unique” arrangement for the data center. "Colocation arrangements of the type presented here present an array of complicated, nuanced, and multifaceted issues, which collectively could have huge ramifications for both grid reliability and consumer costs," FERC Commissioner Mark Christie said in the order.
FERC chairman Willie Phillips, who voted in favor of the ISA, described the ruling as “a step backward for both electric reliability and national security.” He argued that the PJM proposal found no requirement for transmission upgrades to facilitate the load increase, contending that FERC should have accepted the proposal while ensuring PJM submitted regular informational filings to ensure transparency.
“In failing to accept the agreement, we are rejecting protections that the interconnected transmission owner says will enhance reliability while also creating unnecessary roadblocks to an industry necessary for our national security,” Phillips argued.
Talen Energy responded to the ruling, stating: "We believe this ISA amendment is just and reasonable and in the best interest of consumers. FERC’s decision will have a chilling effect on economic development in states such as Pennsylvania, Ohio, and New Jersey."
