CONSTELLATION ENERGY CORPORATION stock forum
CEG dropping because of the FERC rejection of the Talen/Amazon deal makes no sense.The Talen deal involved an already functioning nuclear power plant, Susquehanna, which meant that diverting a significant portion of its output directly to Amazon's data center could have affected the overall power supply available to the regional grid. This raised concerns with FERC about potential higher consumer electricity prices and compromised grid reliability due to reduced energy availability for public consumption.On the other hand, the Constellation Energy and Microsoft deal involves restarting the Crane Clean Energy Center (formerly Three Mile Island Unit 1), which is not currently operational. Bringing an inactive facility back online to supply power should not negatively impact existing consumer prices or grid reliability, as it would effectively add new energy capacity to the grid. This approach is less likely to draw regulatory pushback for impacting current grid stability or consumer costs since it introduces additional power rather than reallocating existing supply.
CEG Next week will be crucial to see if it can successfully break through the key resistance level, or if it will pull back for another consolidation before attempting again.