Constellation Energy Corp.'s ambitious plan to restart the former Three Mile Island Unit 1 is encountering a significant regulatory hurdle over water usage. The company has requested permission to withdraw up to 73.2 million gallons of water per day from the Susquehanna River to support the Crane Clean Energy Center, the rebranded nuclear facility. The Susquehanna River Basin Commission is currently reviewing the application and has opened a public comment period through May 4, following a hearing that drew opposition from local stakeholders concerned about water availability amid ongoing drought conditions in parts of Pennsylvania.
Water Usage and Regulatory Scrutiny
According to commission documents, if approved, approximately 21 million gallons per day would not be returned to the river, raising environmental and community concerns. The water request, while lower than the previous power-generation approval of 122.8 million gallons per day, is significantly higher than the 44 million gallons per day permitted during decommissioning. This has given critics a clear target as the proposal moves from conceptual planning to actual permitting. The Pennsylvania Department of Environmental Protection issued a draft wastewater discharge permit on April 2, with public comments accepted through May 18.
The Crane Clean Energy Center and Microsoft Deal
The Crane Clean Energy Center, located on the site of the infamous Three Mile Island nuclear plant, is at the heart of Constellation's argument that legacy nuclear facilities are essential for powering the energy-intensive future of artificial intelligence and cloud computing. The company has secured a 20-year power purchase agreement with Microsoft Corp., which has committed to taking all output from the upgraded 835-megawatt facility. Constellation projects that the restart will create 3,400 jobs, generate $3.6 billion in tax revenue at the state and federal levels, and provide a $16 billion economic boost to Pennsylvania.
Timeline and Grid Connection Challenges
Constellation aims to have the plant operational by 2027, but the timeline faces potential delays from permitting, local opposition, and grid interconnection bottlenecks. Reuters reported that PJM Interconnection's early response suggested the plant might not connect to the grid until as late as 2031. However, Constellation CEO Joseph Dominguez told investors the company remains on track for a 2027 restart, noting plans to request a transfer of certain grid rights from the Eddystone gas-fired plant to the Crane site with federal regulators.
Industry Context and Federal Support
The federal government is supportive of nuclear power expansion. The U.S. Department of Energy's UPRISE program aims to add 5 gigawatts of nuclear capacity by 2029 through reactor uprates and restarts. Rian Bahran, a DOE nuclear official, described uprates as "the most cost effective and immediate way to increase nuclear capacity." Constellation is among several utilities, including Vistra Corp., Duke Energy Corp., Southern Co., and Entergy Corp., that could benefit from this initiative.
Market Impact and Financial Outlook
Constellation's stock has reflected renewed optimism, closing at $313.53 on Friday, up from $292.77 the previous day, with an intraday peak of $314.20. The company recently outlined a $3.9 billion capital plan and increased its share buyback authorization to $5 billion. It has secured over 5,650 megawatts in long-term clean-energy deals, some linked to Meta Platforms Inc. and Microsoft. Investors will get more details at the company's annual meeting on Tuesday and its Q1 earnings call on May 11, where scrutiny on the Crane project, water permits, grid delays, and data-center power demand is expected.
