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Nuclear Comeback? Constellation Mulls Three Mile Island Revival

Nuclear, Three Mile Island, Constellation Energy

The owner of the dormant Three Mile Island nuclear power plant is actively exploring the possibility of restarting the reactor, which was shut down five years ago. Constellation Energy, the current owner, confirmed in July that it has completed the engineering assessments necessary to determine that “it would be technically feasible to restart the unit.”

During this summer’s lengthy negotiations over Pennsylvania’s 2024-25 state budget, sources revealed that the Shapiro Administration had floated a proposal to convert unused tax credits from 2022 into a plan that could potentially support the project.

However, Constellation has not yet decided whether to move forward with the restart. In response to questions from PennLive, the company stated: “Though we have determined it would be technically feasible to restart the unit, we have not made any decision on a restart as there are many economic, commercial, operational, and regulatory considerations remaining.”

Despite the uncertainties, the idea of reviving Three Mile Island’s Unit 1 reactor seems more plausible now than when it was first discussed earlier this year. This possibility has generated both hope and concern within the region.

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State Representative Tom Mehaffie, R-Dauphin County, who previously led unsuccessful efforts to secure state subsidies to keep the plant operational six years ago, expressed his optimism: “No one ever thought there would be an opportunity to reopen a nuclear power plant. Now, we have that opportunity, and we cannot squander it.”

On the other hand, opposition is already forming. A group of citizens has organized another round of public protests against the potential restart. “The battle is on,” declared Gene Stilp, a longtime anti-nuclear activist, in a press release.

The discussions about reopening are focused exclusively on Unit 1 of the Three Mile Island plant, which operated from 1974 until its closure in 2019. At that time, Exelon, the plant’s previous owner, cited high operational costs and competition from cheaper natural gas as reasons for the shutdown. Unit 2, the site of the infamous 1979 partial meltdown, was severely damaged and is much further along in its decommissioning process.

When it closed, Three Mile Island was the only one of Pennsylvania’s five nuclear plants that was not profitable, with projected losses of $57 million for 2019. The closure resulted in the loss of more than 600 permanent jobs in central Pennsylvania, where salaries of $80,000 or more were common. Additionally, about 1,200 temporary union jobs, which provided work during the plant’s periodic refuelings, were also lost.

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The renewed interest in nuclear power stems in part from its ability to generate electricity without producing greenhouse gas emissions, a feature that has made it more attractive to lawmakers and energy executives amid growing concerns about climate change. Nuclear power is also valued for its reliability.

It remains unclear what kind of state aid Constellation might be seeking for the restart. In Michigan, Governor Gretchen Whitmer and lawmakers have committed $300 million in state subsidies over two budgets to help another energy company reopen the Palisades nuclear plant, which was shut down in 2022. Additionally, the U.S. Department of Energy has provided a $1.52 billion conditional loan for that project.

Governor Josh Shapiro declined to comment on the specifics of the discussions in Harrisburg but reaffirmed his commitment to an “all-of-the-above energy” strategy, which includes nuclear power. A proposal obtained by PennLive this week outlined a potential tax write-off of up to $100 million per year for three years for any investor who committed at least $600 million to a project that produced “reliable baseline energy” and created at least 550 jobs. However, this proposal did not make it into the final 2024-25 state budget, largely due to resistance from Senate Republican leaders who argued that the proposal was too vague and introduced too late in the budget process.

Senate Majority Leader Joe Pittman, R-Indiana County, when asked said “I’m not interested in hypotheticals right now. I’m interested in effectuating the words on paper that we have (in place) to make a 24-25 budget.” Similarly, Senator Gene Yaw, R-Lycoming County, who chairs the Senate Environmental and Energy Resources Committee, expressed the need for more detailed information about the feasibility of the Constellation project before committing state support.

Both Pittman and Yaw left the door open to further discussions on the issue. “I consider everything,” Pittman remarked as he headed into an elevator at the state Capitol.

Three Mile Island Unit 1 has been owned by Constellation since 2022, following its spin-off from Exelon. The company currently owns and operates 21 reactors across 14 locations nationwide, including the Peach Bottom nuclear plant in York County and Limerick in Montgomery County. Unit 1 is now in a state of nuclear mothballing, with its spent fuel removed from wet storage pools and placed in dry cask storage on the island. If no further action is taken, the plant will enter “SAFSTOR” status later this year, a process that could last until 2079 as residual contamination naturally decreases, allowing for eventual dismantling of major buildings and components.

According to a July report by Reuters, Constellation’s stock price has risen by about 80% this year, driven by the prospect of the company capitalizing on growing demands for electricity from technologies like generative artificial intelligence.

As Constellation weighs its options, the potential reopening of Three Mile Island Unit 1 continues to be a contentious issue, with significant implications for the future of energy in Pennsylvania and beyond.

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