Constellation to Launch Crane Clean Energy Center, Bringing Jobs and Carbon-Free Energy Back to the Grid

LONDONDERRY, PA (September 20, 2024) Constellation (Nasdaq: CEG) today announced a 20-year power purchase agreement with Microsoft that will pave the way for the launch of the Crane Clean Energy Center (CCEC) and the re-launch of Three Mile Island Unit 1, which operated with industry-leading safety and reliability for decades before it was closed for economic reasons exactly five years ago. Under the agreement, Microsoft will purchase power from the renovated plant as part of its goal to help transition its PJM data center capacity to carbon-free energy.

“Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires a significant amount of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only source of energy that can consistently deliver on that promise,” said Joe Dominguez, Constellation’s president and CEO. “Before its premature closure due to the poor economy, this plant was one of the safest and most reliable nuclear plants on the grid, and we look forward to restoring it 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 staunch advocate for our company, dedicating 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 next to TMI Unit 2, which was shut down in 1979 and is being decommissioned by its owner, Energy Solutions. TMI Unit 1 is a fully self-contained facility and its long-term operation was not affected by the Unit 2 accident. To prepare for restart, significant investments will be made to restore the plant, including the turbine, generator, main power transformer, and cooling and control systems. Restarting the nuclear reactor requires approval from the U.S. Nuclear Regulatory Commission after a comprehensive safety and environmental assessment, as well as permits from appropriate state and local agencies. In addition, through a separate application, Constellation will seek a license renewal that will extend the plant’s operation until at least 2054. The CCEC is expected to be operational in 2028.

“This agreement is an important milestone in Microsoft’s efforts to help decarbonize the grid, supporting our commitment to achieving a negative carbon footprint. Microsoft continues to work with energy providers to develop carbon-free energy sources to help meet the capacity and reliability needs of the grid,” said Bobby Hollis, vice president of Energy at Microsoft.

A recent economic impact study commissioned by the Pennsylvania Building & Construction Trades Council found that the new CCEC would create 3,400 direct and indirect jobs and add more than 800 megawatts of carbon-free electricity to the grid. The report, conducted by The Brattle Group, also found that restarting the plant would add $16 billion to the state’s GDP and generate more than $3 billion in state and federal taxes.

To ensure the local community fully shares in the economic benefits of the plant’s restart, Constellation has committed to an additional $1 million in philanthropic contributions in the region over the next five years to support workforce development and other community needs. The company has maintained strong relationships with Middletown and the surrounding communities throughout the 20 years it has operated the plant, and public safety has been its No. 1 priority. Constellation is committed to making community outreach, engagement and dialogue cornerstones of its restart plan.

“CCEC will support thousands of family-supporting jobs for decades to come,” said Rob Bair, president of the 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 delivering safe, reliable, carbon-free electricity that helps reduce emissions and grow Pennsylvania’s economy,” said Governor Josh Shapiro. “Under the watchful eye of state and federal officials, the Crane Clean Energy Center will safely leverage 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 lower energy costs and ensure the reliability of our grid so that Pennsylvanians can have access to affordable energy produced right here in Pennsylvania for years to come — and the Crane Clean Energy Center will help us achieve these goals.”

“This is a valuable opportunity to invest in clean, carbon-free, affordable energy – on the heels of the hottest year on record,” said Pennsylvania Rep. Tom Mehaffie (106th^t District). “This will transform the local economy and represents a rare opportunity to power our economy with reliable, clean energy we can count on.”

In Pennsylvania, public support for restarting is strong. A recent statewide poll by Susquehanna Polling & Research found that Pennsylvanians favor restarting the plant by a margin of more than 2-1. The same independent poll found that 70 percent of state residents support continued use of nuclear power as a source of reliable, emission-free energy.

“The launch of the Crane Clean Energy Center is a significant milestone for our nation, our region and the people of the great state of Pennsylvania,” said Dr. Michael Goff, acting assistant secretary in the Department of Energy’s Office of Nuclear Energy. “Always-on, zero-emission nuclear power plays an important role in combating climate change and meeting the nation’s growing energy needs.”

Renewed interest in nuclear power has spread around the world as nations seek to electrify their economies to support the digital economy and address the climate crisis. Among their many features, nuclear plants can reliably produce zero-emission energy 24/7 in all weather conditions and operate for up to two years without refueling.

“I am proud to see the launch of the Crane Clean Energy Center,” said U.S. Congressman Scott Perry. “This key step forward will provide Pennsylvania with enough baseload power to meet its needs for decades to come while creating 3,400 jobs in our community. We thank Constellation Energy for working to bring this economic driver back to South Central Pennsylvania.”

Constellation bought TMI Unit 1 in 1999. Before it was prematurely retired for economic reasons in 2019, the plant had a generating capacity of 837 megawatts, enough to power more than 800,000 average homes. In its final year of operation, the plant produced 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 1,000 highly skilled, mostly union craftsmen who supported the plant’s two-year fuel outage.

The facility will be renamed the Crane Clean Energy Center in honor of Chris Crane, CEO of former parent company Constellation and a true titan of the nuclear industry. Crane, who died in April 2024, was a staunch advocate for the U.S. commercial nuclear industry and the environmental and economic benefits it brought to our nation. He played a key role 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 say about Crane Clean Energy Center:

Chairman of the Londonderry Borough Council Bart Shellenhamer: “This facility has been a good neighbor to Londonderry Township and our region for 45 years, with a workforce dedicated to supporting local nonprofits and the local economy,” said Londonderry Township Board Chairman Bart Shellenhamer. “The Crane Clean Energy Center will bring billions of dollars in new infrastructure investment and help support local businesses, schools and public services that will improve the quality of life throughout the region.”

President and CEO of the Nuclear Energy Institute Maria Korsnick: “The Crane Clean Energy Center is a worthy honor for a leader in the nuclear industry and will bring significant benefits to Pennsylvania and the nation,” said Maria Korsnick, president and CEO of the Nuclear Energy Institute. “In addition to bringing jobs and clean, reliable energy to the state, the investment will help the state achieve its climate and energy independence goals and serve as a catalyst for future investment and economic growth in the region.”

####