Three Mile Island restart could mark a turning point for nuclear energy as Big Tech influence on power industry growsThe Three Mile Island restart could mark a turning point for a nuclear industry that once faced a wave of power plant closures due to poor economics.
While Constellation will restore the plant, it will ditch the name Three Mile Island. The plant will be rechristened the Crane Clean Energy Center, after the late CEO of Exelon, Chris Crane. Constellation said the restart will cost $1.6 billion, financed by the company's own funds.
With four years until the planned restart, one of the big uncertainties is whether Constellation can deliver the power to Microsoft on time. Nuclear projects are notoriously plagued by long delays, big cost overruns and cancellations. But Unit 1 is in good condition and Constellation is confident the plant will restart on schedule, said Bryan Hanson, the company's chief generation officer.
Unit 1 operated safely and efficiently before it was shut down for economic reasons, said Mike Goff, acting assistant secretary for the Office of Nuclear Energy at the Department of Energy. Electricity demand is outpacing supply, as power plants, particularly those that run on coal, are retired faster than new capacity is built, grid operator PJM Interconnection warned in July. PJM operates the grid in Pennsylvania and 12 other states.nearly 40% by 2039 due to the expansion of data centers, manufacturing and the electrification of industry and transportation.
"Given the regulatory and physical challenges, we assume that is likely to experience some delays and cost overruns to execute on the restart," Citi analyst Ryan Levine told clients in an Oct. 14 note.with a neutral rating in October on delay concerns. Constellation's stock has gained more than 90% since the start of the year and 12% since the Three Mile Island restart was announced Sept. 20.
The plant's main power transformers need to be replaced at a cost of $75 million to $100 million, Hanson said. The transformers are on order with delivery expected in late 2026, he said.