US Constellation Energy’s plans to restart the Crane Clean Energy Centre (formerly Three Mile Island) have been backed by a $1bn US Department of Energy (DOE) loan. This is the first time the DOE Loan Programs Office (LPO) has concurrently finalised a conditional loan commitment and financial close, reflecting Constellation’s perceived credit worthiness.
The interest-bearing loan, funded by the Energy Dominance Financing Program, will reduce Constellation’s financing cost and leverage private investment. Under the agreement, Constellation can borrow up to $1bn up to 15 September 2030, according to the filing. The company must pay the loan back by November 2055.
In September 2024, Constellation Energy announced plans to restart unit 1 at the Three Mile Island (TMI) NPP in order to sell the power to Microsoft for its data centres to support the growing demand for artificial intelligence (AI). Microsoft agreed to purchase electricity from TMI-1 in a 20-year agreement to match the energy its data centres consume. Constellation at that time expected the unit to come back online in 2028, subject to approval by the Nuclear Regulatory Commission (NRC) and also planned to apply to extend the plant’s operations to at least 2054. Constellation said it expects to spend about $1.6bn to restart the unit.
TMI comprises two pressurised water reactors (PWRs). The 819 MWe unit 1 operated from 1974 to 2019. The 906 MWe unit 2 began operation in 1978 but was permanently closed the following year following a partial core meltdown due to a cooling malfunction. TMI-2 Solutions plans to continue assessing the level of radioactivity in the reactor building, including using robots to take samples of concrete walls in the building’s basement. The company plans to start removing what remains of TMI-2’s damaged core by mid-2022. It expects to complete the entire clean-up process by 2037. Some 99% of TMI-2’s fuel has been moved to Idaho since the 1979 accident. But officials say removing the last 1% of fuel is challenging.
“DOE’s quick action and leadership is another huge step towards bringing hundreds of megawatts of reliable nuclear power onto the grid at this critical moment,” said Constellation President and CEO Joe Dominguez. “Under the Trump administration, the FERC [Federal Energy Regulatory Commission] and DOE have made it possible for us to vastly expedite this restart without compromising quality or safety.”
He added: “It’s a great example of how America first energy policies create jobs, growth and opportunities and make the grid more reliable. Utilities and grid operators are moving too slowly and need to make regulatory changes that will allow our nation to unlock its abundant energy potential. Constellation and nuclear energy are helping to lead the way and we are thankful to President Trump and Secretary Wright for putting the ‘energy’ back into DOE.”
Crane will support grid stability by delivering reliable, around-the-clock electric supply. An economic impact study commissioned by the Pennsylvania Building & Construction Trades Council found that restarting the reactor at Crane will help keep electricity prices in check; add approximately 3,400 direct and indirect jobs; generate over $16bn for Pennsylvania’s GDP and deliver more than $3bn in state and federal tax revenue.
The Crane Clean Energy Centre is currently more than 80% staffed with over 500 employees, including engineers, mechanics, technicians and licensed operator trainees. Inspections of key plant components and regulatory reviews continue on schedule.
Energy Secretary Chris Wright said that the US is “taking unprecedented steps to lower energy costs and bring about the next American nuclear renaissance”. He added: “Constellation’s restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region. It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.”
