Constellation Energy has announced plans to restart the Three Mile Island Unit 1 nuclear reactor in Pennsylvania, now renamed the Crane Clean Energy Center (CCEC). The restart will be facilitated through a 20-year power purchase agreement with Microsoft. This move revives a facility that was shut down five years ago for economic reasons and aligns with recent findings from the U.S. Department of Energy (DOE) on the potential for expanding nuclear capacity at existing or retired sites.
"Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise," stated Joe Dominguez, President and CEO of Constellation.
Under the agreement, Microsoft will purchase energy from the revived CCEC to help match the power consumption of its data centers in the PJM region with carbon-free energy, supporting its goal to become carbon negative.
The economic impact of restarting the CCEC is projected to be substantial. An economic impact study by The Brattle Group estimates that the project will create approximately 3,400 direct and indirect jobs, contribute $16 billion to Pennsylvania’s GDP, and generate over $3 billion in state and federal taxes.
Governor Josh Shapiro underscored the importance of the project, stating that it will "sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader."
These developments align with a DOE report released this month, which found that more than 60 gigawatts (GW) of new nuclear capacity could potentially be built at operating or recently retired nuclear plant sites across the country. The report highlights the strategic advantage of utilizing existing sites to deliver clean, reliable energy, contributing to national goals of a net-zero economy by 2050.
The DOE evaluated 54 operating and 11 recently retired nuclear power plant sites, identifying 41 of them as suitable for hosting new reactors. According to the report, these sites could deliver an additional 60 GW or more of electric power using large light-water reactor technology, or up to 95 GW with smaller advanced reactors.
Constellation’s initiative to restart Three Mile Island Unit 1 reflects a broader strategy of leveraging existing infrastructure to increase nuclear capacity. This approach could expedite the deployment of clean energy resources without the need for entirely new sites, potentially lowering costs and minimizing regulatory challenges.
Despite the projected benefits, the project faces significant criticism from environmental groups concerned about safety risks, financial costs, and the long-term management of nuclear waste. Kevin Kamps, a radioactive waste specialist with Beyond Nuclear, expressed strong opposition to the restart: “The residents around Three Mile Island have suffered enough already, ever since the 50% meltdown at Unit 2 on March 28, 1979. The risks to safety, health, and the environment of a reactor meltdown would return, and the radioactive waste dilemma would worsen. Microsoft and Constellation have drunk the radioactive Kool-Aid Holtec’s serving up.”
Kamps also highlighted potential financial burdens on the public, adding, “Like with Holtec at Palisades, the costs of restarting TMI 1 would be insanely high, and very likely the public, whether taxpayers or ratepayers, will be forced to pay them. State and federal taxpayers are already on the hook for nearly $3 billion for the Palisades zombie reactor restart in Michigan, but Holtec still wants over $5 billion more, including from ratepayer surcharges.”
Restarting a nuclear facility involves navigating complex regulatory processes. Constellation will need approval from the U.S. Nuclear Regulatory Commission (NRC) following comprehensive safety and environmental reviews, along with permits from relevant state and local agencies. The company also plans to pursue a license renewal to extend the plant’s operations to at least 2054.
Energy projects often face political, legal, and financial hurdles that can escalate costs and ultimately affect consumers, as seen with other nuclear initiatives. For example, Georgia Power customers have experienced significant rate hikes linked to the completion of two new nuclear reactors at Plant Vogtle in Georgia.
These increases were implemented to cover billions in cost overruns from the reactors’ construction and necessary transmission upgrades. Such financial challenges reflect the potential risks Constellation may encounter with the Three Mile Island restart, especially if cost overruns and public funding debates arise. Additional rate hikes in Georgia have also been approved to pass on rising fuel costs from both fossil fuel and nuclear generation, highlighting the broader financial implications of nuclear energy projects.
This example illustrates the potential financial risks and consumer impacts associated with large-scale nuclear projects, underscoring the complexities Constellation may face with the Three Mile Island restart. Navigating regulatory approvals, managing costs, and maintaining community trust will be crucial to minimize financial impacts on end-users and contribute to a successful project launch.
