In The News

By Kim Riley

Constellation Energy Corp. signed its largest-ever power purchase agreement (PPA) with Microsoft, a 20-year deal that will pave the way for the launch of the Londonderry, Pa.-based Crane Clean Energy Center (CCEC) and restart of its Three Mile Island Unit 1 nuclear reactor, which has been shut down for five years.

“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,” said Joe Dominguez, president and CEO at Constellation. 

Under the PPA, Microsoft will purchase energy from the renewed plant as part of its goal to help match the power its data centers in PJM Interconnection use with carbon-free energy.

“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative,” said Microsoft Vice President of Energy Bobby Hollis. “Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids’ capacity and reliability needs.”  

The new CCEC, expected to go online in 2028, will restore 835 megawatts (MW) of reliable, clean, carbon-free energy to the grid, and create 3,400 direct and indirect jobs, according to Constellation.

“I’m proud to see the launch of the Crane Clean Energy Center,” U.S. Rep. Scott Perry (R-PA) said. “This critical step forward will ensure Pennsylvania has sufficient baseload power to meet its needs for decades to come while producing 3,400 jobs in our community."

“Thank you to Constellation Energy for working to bring this economic driver back to South Central Pennsylvania,” said the congressman.

Rob Bair, president of the Pennsylvania State Building and Construction Trades Council, agreed, pointing out that the CCEC will support thousands of family-sustaining jobs for decades to come. 

“It will help make Pennsylvania a leader in attracting and retaining the types of reliable, clean energy jobs that will define the future,” Bair said.

The CCEC also will deliver $3.6 billion in state and federal tax revenue, add $16 billion to the state’s GDP, and reduce 61 million tons of CO2 emissions over 20 years, Constellation said.

“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,” Dominguez said, “and nuclear plants are the only energy sources that can consistently deliver on that promise.” 

Dominguez added that Constellation is especially honored to name the new plant after its former CEO Chris Crane, who passed away in April.

He called Crane “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.”

The Unit 1 reactor at the CCEC is located adjacent to TMI Unit 2, which shut down in 1979 and is in the process of being decommissioned by its owner, Energy Solutions. TMI Unit 1 is a fully independent facility, and its long-term operation was not impacted by the Unit 2 closure. 

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, according to Constellation. 

Restarting a nuclear reactor also requires U.S. Nuclear Regulatory Commission approval following a comprehensive safety and environmental review, as well as permits from relevant state and local agencies. 

“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,” said Pennsylvania Gov. Josh Shapiro. “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.”

Shapiro said his administration will continue to work to cut energy costs and ensure the reliability of the energy grid so that Pennsylvanians have access to affordable power for years to come. “The Crane Clean Energy Center will help us achieve those goals,” he said.  

“This is a valuable opportunity to invest in clean, carbon-free and affordable power on the heels of the hottest year in Earth’s history,” added Pennsylvania State Rep. Tom Mehaffie (R-106). “This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy that we can count on.”

Additionally, through a separate request, Constellation will pursue license renewal that will extend plant operations to at least 2054.

Public support for the restart is strong in the state, according to a recent statewide poll conducted by Susquehanna Polling & Research that found 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.

“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 U.S. 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.”

Constellation purchased TMI Unit 1 in 1999. Before it was retired prematurely for economic reasons in 2019, the plant had a generating capacity of 837 MW, which is enough to power more than 800,000 average homes. 

In its last year of operation, the plant was producing electricity at maximum capacity 96.3 percent of the time, 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 that supported the plant’s biennial refueling outages, Constellation said.

Londonderry Township Board of Supervisors Chairman Bart Shellenhamer said the unit was a good neighbor to Londonderry Township, Pa., and the surrounding region for 45 years, with a workforce dedicated to contributing to area nonprofits and supporting the local economy.

“The Crane Clean Energy Center will bring billions in new infrastructure investment and help support area businesses, schools, and public services that improve quality of life for the whole region,” said Shellenhamer.

Constellation said it 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.