Can PA Consumers Afford to Restart Three Mile Island?

Could restarting Three Mile Island help handle PA's growing energy demand or will it just cost PA consumers more?

PA Lawmakers Debate Restarting Three Mile Island

While Three Mile Island could be restarted to supply electricity, PA consumers may not be able to afford its full cost.
While Three Mile Island may add to PA’s generation capacity, some wonder if the cost to safely restart the nuclear generator could raise taxes and electricity prices for all PA consumers.

PA Lawmakers are facing a changing energy market. With more demand for carbon-free, cheap electricity, and rising use, current market strategies aren’t playing out. And this is leading to higher energy bills for PA consumers. So, lawmakers are looking for easy, low-carbon solutions. One quick option is restarting Three Mile Island. But the costs maybe more than PA consumers can afford.

PA Energy Needs are Increasing

For the last ten years, the PA grid has sent out power based on electricity demand. Energy use usually builds between noon and 6 pm and then decreases into the evening. As a result, industry focus has been on building power plants that can vary their output.

But, with more electric vehicles, crypto, and data centers, baseload power need has returned. Baseload power means keeping a small but steady amount on the grid at any given time. Coal and nuclear energy are both great at providing baseload power, since their energy output is steady. However, coal is phasing out at every turn due to climate change concerns. So this now leaves nuclear energy as the current best option.

The Costs of Restarting Three Mile Island

For these reasons, investing in nuclear now seems practical. Still, the costs to restart the remaining Three Mile Island nuclear generator could be huge. Firstly, there’s the actual dollar amount. Michigan is restarting a similar plant for $1.5 billion in federal dollars. Plus, the state is kicking in another $300 million. That means taxpayers would likely shoulder at least some of those costs. But as PA lawmakers chew over the notion of a Three Mile Island restart, they aren’t offering any idea about the price. Doubtless, though, it will be big.

Secondly, there’s the possible environmental impact. Three Mile Island was the site of the biggest US nuclear power plant disaster in 1979. And it’s not something that PA lawmakers or residents are in a hurry to forget.

Finally, there’s the question about how much money would restarting the plant actually bring in. Notably, Constellation Energy, the current plant owner, has not made any decisions about a restart. And for good reason. The nuclear plant was shut down in 2019 because it was too expensive to operate. However, the market has changed a lot since then. Recently a crypto mine in PA has partnered with a nuclear plant to provide energy directly to their business. So, financing a restart may seem less risky.

Can PA Consumers Afford to Do Nothing?

While the costs of restarting the reactor could be high, the price of doing nothing could be worse. With higher energy demand than ever before, and power plants retiring, electricity prices are already rising. Duquesne Light Company (DLC) customers will face a 12% rate hike this fall. But they’re likely not going to be the only one raising prices this winter. And that’s due to lower energy capacity in the entire PJM Interconnection grid.

So yes, PA residents could shoulder some costs to restarting the reactor. But, the price of lower grid capacity is already at our doorstep. PA lawmakers need to come up with a solution, and fast.

Get Affordable PA Electricity

While restarting Three Mile Island isn’t the worst solution to the state’s low grid capacity, it remains to be seen if it’s the best. In the meantime, you should prepare for higher electricity rates this winter. Shopping for a long-term plan with a reputable provider could save you hundreds of dollars a year! Shop now before prices spike for the winter. Visit us at https://www.paenergyratings.com

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