Constellation announces TMI-1 restart, power purchase agreement with Microsoft

Nuclear powerhouse Constellation announced today the signing of a 20-year power purchase agreement with Microsoft that will pave the way for the restart of Three Mile Island Unit 1-under a new name to honor Chris Crane, former chief executive of Constellation's parent company, Exelon, who passed away earlier this year.

Under the agreement, Microsoft will purchase energy from the plant as part of its goal to help match the power used by its data centers within the Eastern Interconnection with carbon-free energy. The facility's new name will be the Crane Clean Energy Center (CCEC).

Five years ago, the unit was shut down prematurely due to economic challenges in the energy market, with low natural gas prices outpacing nuclear and no incentives in Pennsylvania for TMI's carbon-free energy output.

Since then, there has been renewed interest in nuclear energy around the globe, as nations seek to electrify their economies to support the digital economy and address climate change. Nuclear plants can reliably produce carbon-free energy 24/7 in all weather conditions and run for up to two years without needing to be refueled.

Quotable: "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," said Joe Dominguez, president and CEO of Constellation. "Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission to serve as an economic engine for Pennsylvania."

"We are especially honored to name this new plant after our former CEO Chris Crane, who was a fierce advocate for our business, devoting his entire career to the safe, reliable operation of our nation's nuclear fleet, and we will continue that legacy at the Crane Clean Energy Center," Dominguez added.

From Microsoft's perspective, "this agreement is a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative. Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids' capacity and reliability needs," said Bobby Hollis, vice president of Energy for Microsoft.

The plant: TMI-1 is located adjacent to TMI-2, which shut down in 1979 following a partial reactor meltdown and is in the process of being decommissioned by its owner, EnergySolutions. TMI-1 is a fully independent facility, and its long-term operation was not impacted by the Unit 2 accident.

Constellation purchased TMI-1 in 1999. Before it was retired in 2019, the plant had a generating capacity of 837 megawatts, which is enough to power more than 800,000 average homes. During its last year of operation, the plant produced electricity at maximum capacity 96.3 percent of the time-well above the industry average. It had an annual payroll of about $60 million and employed more than 600 full-time workers in addition to the 1,000 highly skilled, mostly union craftspeople who supported the plant's biennial refueling outages.

Benefit to the region: A recent economic impact study commissioned by the Pennsylvania Building & Construction Trades Council found that the new CCEC will create 3,400 direct and indirect jobs and add more than 800 megawatts of carbon-free electricity to the grid. The report, produced by the Brattle Group, also found that restarting the plant will add $16 billion to the state's gross domestic product and generate more than $3 billion in state and federal taxes.

To ensure the local community's inclusion in the economic benefits of restarting the facility, Constellation has committed an additional $1 million in philanthropic giving to the region over the next five years to support workforce development and other community needs. The company had a strong relationship with Middletown and the surrounding communities during the 20 years it operated the plant. Constellation is committed to making community outreach, engagement and dialogue cornerstones of its restart plan.

"The CCEC will support thousands of family-sustaining jobs for decades to come," said Rob Bair, president of the Pennsylvania Building & Construction Trades Council. "It will help make Pennsylvania a leader in attracting and retaining the types of reliable, clean energy jobs that will define the future."

Support for nuclear: Public support for the restart is strong in Pennsylvania. According to a recent statewide poll conducted by Susquehanna Polling & Research, Pennsylvanians favor restarting the plant by a more than 2-1 margin. The same independent poll found that 70 percent of state residents support the continued use of nuclear energy as a source of reliable, carbon-free energy.

Pennsylvania Gov. Josh Shapiro said, "Pennsylvania's nuclear energy industry plays a critical role in providing safe, reliable, carbon-free electricity that helps reduce emissions and grow Pennsylvania's economy. Under the careful watch of state and federal authorities, the Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania's legacy as a national energy leader."

What's next: To prepare for the restart, significant investments will be made to restore the plant, including the turbine, generator, main power transformer, and cooling and control systems. The company will need U.S. Nuclear Regulatory Commission approval to restart, which will entail a comprehensive safety and environmental review, as well as permits from relevant state and local agencies. Company officials aim to get the unit back on line in 2028.

In a parallel path, Constellation will pursue license renewal that would extend plant operations at TMI-1 until at least 2054.

Recognition: The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, who was CEO of Constellation's former parent company Exelon and a titan of the nuclear industry. Crane passed away in April 2024. He was a staunch advocate for America's commercial nuclear power industry and the environmental and economic benefits the technology delivered. He was instrumental in both shaping the industry and rebuilding public support for nuclear technology.

Crane helped build the Institute for Nuclear Power Operations and served on the boards of the Nuclear Energy Institute and the World Association of Nuclear Operators.

"The start of the Crane Clean Energy Center represents an important milestone for our nation, the region, and the people of the great state of Pennsylvania," said Michael Goff, acting assistant secretary for the Department of Energy's Office of Nuclear Energy. "Always-on, carbon-free nuclear energy plays an important role in the fight against climate change and meeting the country's growing energy demands."