Artificial intelligence needs enormous amounts of electricity, and that has turned power companies into some of the most closely watched stocks in the market.
Talen Energy (TLN) gave investors a hard number on July 14
The Houston power producer said it had secured about $1.2 billion in revenue for a single year that does not begin until 2028. The stock rose on the news, and Wall Street price targets now sit well above where the shares trade. There is a detail in the announcement that most coverage left out.
The price Talen received for its power actually went down compared with last year, which changes what the $1.2 billion really tells you about the AI power boom. What Talen Energy actually locked in with the PJM capacity auction Talen cleared 10,180 megawatts at $325 per megawatt-day in PJM’s Base Residual Auction for the 2028/2029 planning year, worth approximately $1.208 billion, the company reported in a Form 8-K filed with the SEC. That money covers June 1, 2028, through May 31, 2029.