Talen Energy stock surges after expanded nuclear power deal with Amazon

Published 06/11/2025, 08:50 AM
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Investing.com -- Talen Energy Corp (NASDAQ:TLN) stock jumped 8% after the independent power producer announced an expanded nuclear energy agreement with Amazon Web Services (NASDAQ:AMZN) to provide carbon-free energy from its Susquehanna nuclear power plant.

Under the new power purchase agreement (PPA), Talen will supply electricity to Amazon for operations supporting AI and cloud technologies at Amazon’s data center campus adjacent to Susquehanna, with potential delivery to other sites throughout Pennsylvania. At full capacity, Talen will provide Amazon with 1,920 megawatts of carbon-free nuclear power through 2042, with extension options.

The power delivery schedule will ramp over time, expecting to reach full volume by 2032, with potential for acceleration. This long-term transaction aims to decrease Talen’s market risk and reduce its reliance on the Federal nuclear production tax credit.

"Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues," said Talen President and CEO Mac McFarland.

The existing co-located load arrangement between the companies will transition to a "front-of-the-meter" arrangement after transmission reconfigurations expected in Spring 2026. Under the new agreement, Susquehanna will provide carbon-free power to the PJM grid, with Talen acting as the retail electric generation supplier to Amazon.

The partnership supports the jobs of more than 900 employees currently working at the Susquehanna facility and is expected to help maintain nuclear energy generation at the plant for years to come. The companies will also explore building new Small Modular Reactors within Talen’s Pennsylvania footprint and pursue expanding the nuclear plant’s energy output.

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