HARRISBURG, Pa. (AP) – The U.S. Department of Energy will provide up to $1 billion in loans to Constellation Energy to help restart the Unit 2 nuclear reactor at the Three Mile Island Generating Station, officials announced today. The funding aims to revive the facility, site of the 1979 partial meltdown that remains the worst commercial nuclear accident in U.S. history.
The loan, facilitated thru the Bipartisan Infrastructure Law’s Loan Programs Office, comes as demand for carbon-free energy sources surges, driven by data center expansion and broader climate goals. Restarting the reactor-which was shuttered in 2019 after decades of operation-would add 1,200 megawatts of electricity to the grid, bolstering Pennsylvania’s power supply and contributing to national energy security.
Three Mile Island’s Unit 2 was forced offline in 2019 when then-parent company Exelon cited financial losses and the failure of Pennsylvania lawmakers to approve subsidies to keep it running.Unit 1 at the plant continued operating untill 2019, when it too was decommissioned. The decision to close both reactors sparked concerns about grid reliability and job losses in the region.
The Energy Department’s loan will support the complex process of re-licensing, re-staffing, and upgrading the Unit 2 reactor. Constellation anticipates the reactor could be operational by the late 2020s. the move reflects a broader “renaissance” for nuclear power, as policymakers increasingly view it as a crucial component of a clean energy future. Rising power demand, especially from energy-intensive data centers, is further accelerating the need for reliable, large-scale electricity generation.
