Constellation signs its largest-ever power
purchase agreement with Microsoft, a deal that will restore TMI
Unit 1 to service and keep it online for decades; add approximately
835 megawatts of carbon-free energy to the grid; create 3,400
direct and indirect jobs and deliver more than $3 billion in state
and federal taxes
Constellation (Nasdaq: CEG) announced today the signing of a
20-year power purchase agreement with Microsoft that will pave the
way for the launch of the Crane Clean Energy Center (CCEC) and
restart of Three Mile Island Unit 1, which operated at
industry-leading levels of safety and reliability for decades
before being shut down for economic reasons exactly five years ago
today. Under the agreement, Microsoft will purchase energy from the
renewed plant as part of its goal to help match the power its data
centers in PJM use with carbon-free energy.
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Constellation announced today the signing
of a 20-year power purchase agreement with Microsoft that will pave
the way for the launch of the Crane Clean Energy Center (CCEC) and
restart of Three Mile Island Unit 1. (Photo: Business Wire)
“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, 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.”
The Unit 1 reactor 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 accident. 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.
Restarting a nuclear reactor requires U.S. Nuclear Regulatory
Commission approval following a comprehensive safety and
environmental review, as well as permits from relevant state and
local agencies. Additionally, through a separate request,
Constellation will pursue license renewal that will extend plant
operations to at least 2054. The CCEC is expected to be online in
2028.
"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, VP of
Energy, Microsoft.
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 GDP and generate more than $3
billion in state and federal taxes.
To ensure that the local community fully participates 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 over the 20 years
that it operated the plant, with public safety as its No. 1
priority. 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, Pennsylvania State
Building and 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.”
“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 Governor 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. My
Administration will continue to work to cut energy costs and ensure
the reliability of our energy grid so that Pennsylvanians can have
access to affordable power made right here in Pennsylvania for
years to come – and the Crane Clean Energy Center will help us
achieve those goals.”
“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,” said Pennsylvania State Representative Tom Mehaffie
(106th District). “This will transform the local economy and
presents a rare opportunity to power our economy with reliable
clean energy that we can count on.”
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.
"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 Dr. Michael Goff, Acting
Assistant Secretary, 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."
Renewed interest in nuclear energy has spread globally as
nations seek to electrify their economies to support the digital
economy and address the climate crisis. Among their many
attributes, 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.
“I’m proud to see the launch of the Crane Clean Energy Center,”
said U.S. Congressman Scott Perry. “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.”
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 megawatts, 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 – well above the industry average. The plant 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.
The plant will be renamed the Crane Clean Energy Center in honor
of Chris Crane, who was CEO of Constellation’s former parent
company and a true titan of the nuclear industry. Crane, who passed
away in April 2024, was a staunch advocate for America’s commercial
nuclear power industry and the environmental and economic benefits
it delivered for our nation. He was instrumental in both shaping
the industry and rebuilding public support for nuclear technology.
Crane helped build the Institute for Nuclear Power Operations
(INPO) and served on the boards of the Nuclear Energy Institute
(NEI) and the World Association of Nuclear Operators (WANO).
What others are saying about the Crane Clean Energy
Center:
Londonderry Township Board of Supervisors Chair Bart
Shellenhamer: “This unit was a good neighbor to Londonderry
Township and our surrounding region for 45 years, with a workforce
dedicated to contributing to area nonprofits and supporting the
local economy,” said Londonderry Township Board of Supervisors
Chair Bart Shellenhamer. “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.”
Nuclear Energy Institute President and CEO Maria
Korsnick: “The Crane Clean Energy Center is a fitting honor for
a nuclear industry leader and will bring significant benefits to
Pennsylvania and the nation,” said Maria Korsnick, President and
Chief Executive Officer of the Nuclear Energy Institute. “In
addition to restoring jobs and clean, reliable energy to the state,
the investment will help the country meet its climate and energy
independence goals and serve as a catalyst for future investment
and economic growth in the region.”
About Constellation
A Fortune 200 company headquartered in Baltimore, Constellation
Energy Corporation (Nasdaq: CEG) is the nation’s largest producer
of clean, carbon-free energy and a leading supplier of energy
products and services to businesses, homes, community aggregations
and public sector customers across the continental United States,
including three fourths of Fortune 100 companies. With annual
output that is nearly 90% carbon-free, our hydro, wind and solar
facilities paired with the nation’s largest nuclear fleet have the
generating capacity to power the equivalent of 16 million homes,
providing about 10% of the nation’s clean energy. We are further
accelerating the nation’s transition to a carbon-free future by
helping our customers reach their sustainability goals, setting our
own ambitious goal of achieving 100% carbon-free generation by
2040, and by investing in promising emerging technologies to
eliminate carbon emissions across all sectors of the economy.
Follow Constellation on LinkedIn and Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20240920487805/en/
Paul Adams Constellation Communications 667-218-7700
paul.adams@constellation.com
Constellation Energy (NASDAQ:CEG)
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