LONDONDERRY TOWNSHIP, Pa. (Dec. 18, 2025) — The U.S. Energy Secretary is betting that one of the most symbolically loaded names in American energy history can become a blueprint for the next era of electricity demand: artificial intelligence. This week, Energy Secretary Chris Wright visited the former Three Mile Island nuclear station—now branded as the Crane Clean Energy Center—to promote a planned restart of the site’s Unit 1 reactor, arguing that more nuclear generation will strengthen reliability, reduce blackout risks, and ultimately push electricity prices down. [1]
The visit, which drew Constellation Energy executives and local officials, comes as the Mid-Atlantic power grid faces a new reality: demand is rising fast, driven in part by data centers, while the region’s pipeline of new generation has struggled to keep pace. The political and economic stakes are enormous—touching everything from household utility bills to the competitiveness of U.S. technology companies racing to scale AI. [2]
What’s happening at Three Mile Island now
The planned restart centers on Three Mile Island Unit 1, a separate reactor from Unit 2, which suffered the infamous 1979 accident and remains tied to the site’s legacy. Unit 1 ceased operations in 2019 for economic reasons, but Constellation Energy is pursuing a return to service—aiming for 2027—using upgrades and a new financial package backed by the federal government. [3]
In the public messaging around the restart, “AI” is no longer a side note—it’s a central rationale. Microsoft has signed a long-term power purchase agreement tied to the project, and the administration is framing the restart as a way to secure reliable electricity for data center growth while supporting broader industrial expansion. [4]
The $1 billion federal loan and what it’s designed to do
A major pillar of the restart plan is a $1 billion loan closed by the Department of Energy’s Loan Programs Office (LPO) to Constellation Energy Generation, LLC. DOE describes the loan as support for restarting an 835-megawatt nuclear plant on the Susquehanna River—intended to provide “baseload” power into the PJM Interconnection region, pending U.S. Nuclear Regulatory Commission licensing approvals. [5]
DOE has positioned the financing as part of the Trump administration’s energy agenda, tying it to goals of lowering energy costs, strengthening grid reliability, and expanding U.S. capacity to compete in advanced computing and AI. In DOE’s framing, the restarted reactor could supply enough electricity to power the equivalent of roughly 800,000 homes, while also supporting manufacturing growth and data center load. [6]
“Poster child” for Trump’s energy-and-AI agenda
During his visit, Wright characterized the Three Mile Island restart as the “poster child” for President Donald Trump’s energy and artificial intelligence strategy, leaning into a theme the administration has emphasized for months: build more power—especially firm, around-the-clock generation—and the economy (and AI infrastructure) can expand without destabilizing grids. [7]
Wright also directly challenged the notion that data centers inherently drive up electricity costs. In remarks reported locally, he argued that steadier demand can encourage investment in supply and reduce price volatility—while blaming high prices in some states on policy choices. [8]
Local coverage captured Wright’s argument in blunt terms: he said he’s “very proud” of the plant’s restart and promised it would “reduce the risks of blackouts” and “drive down electricity prices,” explicitly linking that outcome to enabling Big Tech companies to build data centers with reliable power. [9]
The grid reality: PJM capacity prices are hitting record highs
Wright’s “prices go down” claim lands amid clear warning signals from PJM, the grid operator that serves a 13-state region plus Washington, D.C. PJM’s latest capacity auction cleared at a record $333.44 per megawatt-day, according to Reuters, reflecting a market where electricity demand—especially from data centers—is overtaking supply. [10]
Capacity prices represent payments to generators to be available during periods of system stress, and they flow through to customer bills as one component among many (alongside fuel costs, transmission upgrades, and other charges). Reuters reported that some areas in PJM territory saw utility bills jump more than 20% starting last summer, highlighting why politicians and regulators are increasingly focused on grid affordability. [11]
Perhaps most alarming: PJM officials said the auction procured about 6,600 megawatts less than the system’s reliability requirement—an undersupply large enough to power nearly 5 million homes—underscoring the tight margin as demand climbs. [12]
Why the Three Mile Island restart is colliding with PJM politics
The Crane Clean Energy Center isn’t just a construction-and-refurbishment project—it’s also a grid integration project. Constellation CEO Joe Dominguez said he expects the facility to be operational in summer 2027, and he pointed to one key obstacle: ensuring PJM connects the plant to the grid on schedule. [13]
In the same appearance, Wright indicated he would “intervene” to help ensure PJM meets the timeline, though public reporting did not specify what form that intervention could take. The exchange highlights a growing tension: grid operators are under pressure to ensure reliability and plan years ahead, while political leaders want quicker timelines to meet AI-driven demand and calm consumer price anxiety. [14]
That political pressure is already visible in other PJM battles. Reuters reported that a group of PJM-area governors—including Pennsylvania Gov. Josh Shapiro—previously negotiated a price ceiling and floor for capacity auctions, and Shapiro is urging federal regulators to extend price limits to future auctions to protect ratepayers. [15]
The economic pitch: jobs, taxes, and local revenue
Supporters of the Crane restart are also selling the project as a local economic engine. State Rep. Tom Mehaffie, a Republican whose district includes the area, said the restart can drive revenue through employee and corporate taxes, calling it “an economic driver for Pennsylvania.” [16]
DOE similarly says the project will create “over 600 American jobs” and help strengthen grid reliability—language that fits neatly with the administration’s argument that nuclear restarts can deliver both energy security and economic development. [17]
The controversy: safety memories and skepticism about who benefits
Any attempt to revive operations on Three Mile Island faces an unavoidable reality: the site’s name still carries emotional and political weight. Wright acknowledged the history publicly, noting that Unit 2 partially melted down in March 1979 and that the episode frightened the public—even as he argued that the industry’s safety record is strong and modern technology would prevent a repeat of the failure mode that contributed to the accident. [18]
Opposition groups and some local residents remain unconvinced. Eric Epstein of TMI Alert questioned whether Pennsylvania should prioritize powering out-of-state tech demand, arguing that data centers are “overhyped” and warning that the state should consider whether it is being “Pennsylvania first or everyone else first.” [19]
There is also a broader trust issue that goes beyond engineering. Critics have argued that communities deserve clear answers about emergency preparedness, regulatory oversight, and the long-term implications of tying a major power asset to a single, long-duration corporate contract—even if the project’s supporters say that contract is precisely what makes financing and planning viable. [20]
How the White House is framing nuclear in the AI era
The Three Mile Island push is not happening in isolation. The White House’s May 2025 executive order on “Reinvigorating the Nuclear Industrial Base” explicitly links nuclear expansion to “a global race to dominate in artificial intelligence,” calling for expedited production and operation of nuclear energy and directing DOE to prioritize actions that support restarts and new construction. [21]
That order also sets ambitious targets—such as facilitating power uprates and pushing new reactor construction over the coming years—signaling the administration’s desire to treat nuclear not merely as a climate or reliability tool, but as strategic infrastructure for U.S. industrial and digital competitiveness. [22]
What happens next: approvals, timelines, and a test of the “prices go down” promise
Even with financing and political momentum, the Crane Clean Energy Center restart still hinges on regulatory and operational milestones. DOE has been explicit that the restart is pending NRC licensing approvals, and Constellation has pointed to grid interconnection timing with PJM as a critical path item for hitting the 2027 target. [23]
The bigger test may be whether the restart can deliver the affordability narrative the administration is building around it. On one side, Wright argues that adding firm supply and encouraging investment will reduce price pressure. On the other, PJM’s record capacity auction prices—and its warning that demand is outrunning supply—underscore how quickly grid economics are changing in the data center era. [24]
For Pennsylvania, the stakes are especially sharp: the state sits at the crossroads of nuclear generation, data center development, and PJM market turbulence. As the Crane Clean Energy Center moves toward a potential restart, Three Mile Island is again becoming a national proving ground—this time not for nuclear risk, but for whether nuclear revival can keep the lights on (and bills manageable) in the age of AI. [25]
References
1. local21news.com, 2. www.reuters.com, 3. www.wgal.com, 4. www.wgal.com, 5. www.energy.gov, 6. www.energy.gov, 7. www.witf.org, 8. www.witf.org, 9. local21news.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.witf.org, 14. www.witf.org, 15. www.reuters.com, 16. www.wgal.com, 17. www.energy.gov, 18. www.witf.org, 19. www.wgal.com, 20. www.witf.org, 21. www.whitehouse.gov, 22. www.whitehouse.gov, 23. www.energy.gov, 24. www.reuters.com, 25. local21news.com
