Department of Energy Approves $1 Billion Loan for Three Mile Island Reactor Restart

The U.S. Department of Energy (DOE) has committed a loan of up to $1 billion to Constellation Energy Corp. to facilitate the restart of a reactor at the Three Mile Island (TMI) nuclear facility in Pennsylvania. This significant federal backing comes amid plans for the plant to supply electricity, indirectly, to Microsoft Corp.’s data centers, with operations potentially resuming as early as 2027. However, the move has drawn criticism from energy analysts, including Bloomberg Opinion columnist Liam Denning, who argues that the facility does not require government financial assistance.

The loan, announced by the Trump administration, aims to support the revival of TMI’s Unit 1 reactor, which was previously shut down in 2019 due to economic pressures. This initiative is part of a broader push by the administration to expand atomic power generation on the national electric grid. Constellation Energy, a major operator of U.S. nuclear capacity, is spearheading the project.

Liam Denning, in a Bloomberg Opinion piece, stated, "The Three Mile Island nuclear facility doesn't need a government handout." He contends that the recent agreement with Microsoft, which will purchase 20 years' worth of power, already provides a viable economic pathway for the plant's reopening. Denning views the federal loan as potentially undermining the perceived market viability of nuclear power, labeling it a "bad look" for the industry.

The restart of TMI Unit 1 signals a growing interest in nuclear energy as electricity demand surges, particularly from emerging technologies like artificial intelligence. Constellation CEO Joe Dominguez previously told Bloomberg that "Policymakers and the market have received a huge wake-up call," emphasizing the necessity of nuclear assets for the nation's future energy landscape. The TMI facility, globally recognized for a partial meltdown in its Unit 2 reactor in 1979, is seeing its Unit 1 revived amidst this renewed focus on clean energy sources.