LONDONDERRY, PA (September 20, 2024) Constellation (Nasdaq: CEG) today announced the signing of a 20-year power purchase agreement with Microsoft, paving the way for the opening of the Crane Clean Energy Center (CCEC) and the restart of Three Mile Island Unit 1, which operated with industry-leading safety and reliability for decades before being shut down for economic reasons exactly five years ago today. Under the agreement, Microsoft will purchase power from the renewed power plant to meet its goal of meeting its PJM data center power consumption with carbon-free energy.

“Powering industries critical to our nation’s global economic and technological competitiveness, such as data centers, requires an abundance of energy that is carbon-free and reliable 24/7. Nuclear power plants are the only energy sources that can consistently deliver on that promise,” said Joe Dominguez, President and CEO of Constellation. “Before its premature closure due to economic reasons, this plant was among the safest and most reliable nuclear power plants on the grid. We look forward to bringing it back online under a new name and with 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 passionate advocate for our company and dedicated his entire career to the safe and reliable operation of our nation’s nuclear power plants. We will continue that legacy at the Crane Clean Energy Center.”

The Unit 1 reactor is located adjacent to TMI Unit 2, which was shut down in 1979 and is currently being decommissioned by its owner, Energy Solutions. TMI Unit 1 is a fully independent facility and its long-term operation was not affected by the Unit 2 accident. In preparation for the restart, significant investments are being made to restore the facility, including the turbine, generator, main transformer, and cooling and control systems. Restarting a nuclear reactor requires approval from the U.S. Nuclear Regulatory Commission following a comprehensive safety and environmental review, as well as approvals from the relevant state and local authorities. In addition, Constellation will seek a license renewal upon separate application extending plant operations through at least 2054. The CCEC is expected to come online in 2028.

“This agreement is an important milestone in Microsoft’s efforts to decarbonize the power grid and achieve our goal of becoming carbon negative. Microsoft continues to work with utilities to develop carbon-free energy sources that help meet the capacity and reliability needs of power grids,” 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 will create 3,400 direct and indirect jobs and add more than 800 megawatts of carbon-free electricity to the grid. The report, prepared by The Brattle Group, also found that restarting the plant will increase the state’s GDP by $16 billion and generate more than $3 billion in state and federal taxes.

To ensure the local community can fully share in the economic benefits of the plant’s reopening, Constellation has committed an additional $1 million in charitable contributions to the region over the next five years to support workforce development and other community needs. The company has maintained a strong relationship with Middletown and the surrounding communities over the 20 years it has operated the plant, with public safety as its top priority. Constellation is committed to making community outreach, engagement and dialogue cornerstones of its reopening plan.

“The CCEC will support thousands of family-sustaining 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 kind of reliable, clean energy jobs that will define the future.”

“Pennsylvania’s nuclear energy industry plays a critical role in providing safe, reliable, carbon-free electricity that helps reduce emissions and grow Pennsylvania’s economy,” said Governor Josh Shapiro. “Under the careful oversight of state and federal agencies, the Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear energy in the Commonwealth while creating thousands of energy jobs and enhancing Pennsylvania’s reputation as a national energy leader. My administration will continue to work to lower energy costs and ensure the reliability of our energy grid so Pennsylvanians can continue to have access to affordable electricity generated right here in Pennsylvania for years to come – and the Crane Clean Energy Center will help us achieve those goals.”

“This is a valuable opportunity to invest in clean, carbon-free and affordable energy – just after the hottest year in Earth’s history,” said Pennsylvania State Representative Tom Mehaffie (106^th District). “This will transform the local economy and provides a unique opportunity to power our economy with reliable, clean energy that we can count on.”

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

“The opening of the Crane Clean Energy Center is an important milestone for our country, the region and the people of the great state of Pennsylvania,” said Dr. Michael Goff, Assistant Secretary of the Department of Energy’s Office of Nuclear Energy. “Always available, carbon-free nuclear energy plays an important role in combating climate change and meeting the nation’s growing energy needs.”

Interest in nuclear energy has been on the rise around the world as countries look to electrify their economies to support the digital economy and tackle the climate crisis. Among their many benefits, nuclear power plants produce carbon-free energy reliably 24/7, whatever the weather, and can operate for up to two years without needing to be refueled.

“I am proud to open the Crane Clean Energy Center,” said U.S. Congressman Scott Perry. “This critical step forward will ensure Pennsylvania has enough baseload power to meet its needs for decades to come, while creating 3,400 jobs in our community. Thank you to Constellation Energy for their work in bringing this economic engine back to South Central Pennsylvania.”

Constellation purchased TMI Unit 1 in 1999. Before it was shut down early in 2019 for economic reasons, 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 the 1,000 highly skilled, mostly unionized tradespeople who supported the plant’s biannual shutdowns for refueling.

The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, CEO of Constellation’s former parent company and a true titan of the nuclear industry. Crane, who passed away in April 2024, was a staunch advocate of America’s commercial nuclear industry and the environmental and economic benefits it brought to our country. He was instrumental in shaping the industry and rebuilding public support for nuclear technology. Crane helped establish 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 the Crane Clean Energy Center:

Bart Shellenhamer, Chairman of the Londonderry City Council: “This entity has been a good neighbor to Londonderry Township and our surrounding region for 45 years, with a workforce that is committed to serving area nonprofits and supporting the local economy,” said Bart Shellenhamer, Chairman of the Londonderry Township Board of Supervisors. “The Crane Clean Energy Center will bring billions in new infrastructure investment and help support area businesses, schools and public services that 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 nuclear industry leader and will bring significant benefits to Pennsylvania and the nation,” said Maria Korsnick, president and CEO of the Nuclear Energy Institute. “The investment will not only create jobs and clean, reliable energy for the state, but will also help the country meet its climate and energy independence goals and serve as a catalyst for future investment and economic growth in the region.”

####