Three Mile Island: Private Investment is Key to Expanding Nuclear Power

Harrisburg, Pa., September 20, 2024 — Constellation Energy and Microsoft announced Friday a deal to restart Three Mile Island, a nuclear power plant near Harrisburg, and provide power for the tech company’s artificial intelligence.

The 20-year power-purchase agreement, announced on the fifth anniversary of the plant’s closure, allows Constellation to refire its reactor and sell the most reliable form of carbon-free energy directly to Microsoft.

André Béliveau, Commonwealth Foundation’s Senior Manager of Energy Policy, issued the following statement:

“The announced partnership between Constellation and Microsoft is a victory for reliable energy and market-driven solutions to secure our energy future. Refiring the closed reactor through private investment demonstrates that Pennsylvania does not need subsidies for nuclear power. The market will deliver reliable, affordable, and clean power far better than government central planning, and here is a case study demonstrating it.

“Private industry knows the need for reliable energy sources to keep the grid online for the new wave of data centers powering our ever-advancing technology needs. Current progressive policy trends toward a government-forced transition away from reliable energy and advocates for handouts to achieve it. These programs—such as the Inflation Reduction Act and Gov. Josh Shapiro’s proposed Pennsylvania Reliable Energy Sustainability Standard (PRESS)—disrupt price signals in our energy markets and flood them with unreliable, weather-dependent sources. Most importantly, such government programs force ratepayers to pay more for less reliable energy, threaten high-paying jobs, and arbitrarily close reliable power plants without replacements.

“Resisting handouts and tax credits and prioritizing reliable energy are fundamental principles for the Commonwealth Foundation’s energy platform. We celebrate this effort that brings private investment onboard and more reliable baseload power to the grid.”

Pennsylvania has nine nuclear reactors, which produce nearly one-third of the commonwealth’s electricity. Only Illinois produces more energy from nuclear.

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The Commonwealth Foundation turns free-market ideas into public policies, fostering prosperity for all Pennsylvanians.