PA Environment Digest Blog: Exelon Announces Three Mile Island Will Be Shut Down By Sept. 30, 2019

On May 8, Exelon Generation announced the Three Mile Island Generating Station Unit 1 (TMI) will shut down by Sept. 30, 2019, as previously announced in May 2017.

With only three legislative session days remaining in May and no action taken to advance House Bill 11 or Senate Bill 510, it is clear a state policy solution will not be enacted before June 1, in time to reverse the premature retirement of the plant.

“Today is a difficult day for our employees, who were hopeful that state policymakers would support valuing carbon-free nuclear energy the same way they value other forms of clean energy in time to save TMI from a premature closure,” said Bryan Hanson, Exelon senior vice president and chief nuclear officer.

“I want to thank the hundreds of men and women who will continue to safely operate TMI through September. We will offer a position elsewhere in Exelon to every employee who wishes to stay with the company and is willing to relocate, and we will do all we can to support the community, the employees and their families during this difficult period,” Hanson added.

Exelon Generation previously announced that the station would prematurely shut down, absent policy reform, due to economic challenges and market flaws that fail to recognize the environmental and resiliency benefits from TMI and other zero-carbon nuclear energy plants across the Commonwealth.

“Although we see strong support in Harrisburg and throughout Pennsylvania to reduce carbon emissions and maintain the environmental and economic benefits provided by nuclear energy, we don’t see a path forward for policy changes before the June 1 fuel purchasing deadline for TMI,” said Kathleen Barrón, Exelon senior vice president, government and regulatory affairs and public policy. “While TMI will close in September as planned, the state has eight other zero-carbon nuclear units that provide around-the-clock clean energy, avoiding millions of tons of carbon emissions every year. We will continue to work with the legislature and all stakeholders to enact policies that will secure a clean energy future for all Pennsylvanians.”

Exelon Generation’s employees will continue to operate the plant at world-class levels of excellence through September, with staff transitions expected within six months of the plant’s final shut down.

Over the past two years, Exelon Generation has worked actively with TMI employees to map them to other positions, and many have already accepted placement elsewhere within the company. Exelon Generation will continue to work with employees to support them during this transition.

Last month, Exelon Generation filed the federally required Post Shutdown Decommissioning Activities Report detailing plans for TMI after its final shutdown, including transitioning staff in three phases down to 50 full-time employees by 2022.

In the filing, Exelon Generation selected “SAFSTOR,” one of three decommissioning options for the plant, and outlined a plan to dismantle large components, including the station’s cooling towers, beginning in 2074.

Reaction

Gov. Tom Wolf issued this statement on the closure-- “I was disappointed to learn this morning’s unfortunate news and continue to stand today with the workers at Three Mile Island and the surrounding community.

“I have directed the Department of Labor & Industry to immediately begin plans to engage with these workers about their futures, and a Rapid Response team is in the process of being deployed.

“They are skilled workers who are in-demand in the economy. While I understand the operator is working to offer internal positions to these workers, we will not spare our resources to provide assistance to those who will be impacted.

“I still believe it is essential to continue this important conversation about preserving and growing Pennsylvania’s carbon-free energy footprint. I remain hopeful that a consensus on a path forward can be reached in the coming weeks.”

Rep. Tom Mehaffie (R-Dauphin), prime sponsor of House Bill 11 to provide aid to nuclear power plants, said, “Today I received the worst news I’ve received since taking office as the state representative for the 106th District in January 2017. It is news I hoped we could prevent, but in reality, it was the possibility of it happening that has driven me so hard over the last few years.

“As they have been all along, my thoughts are with the men and women who work at Three Mile Island and their families who received this devastating news today. Many of these people are not only my constituents; they are my friends, and my heart hurts for what they are going through.

“Furthermore, my thoughts are with the communities surrounding Three Mile Island. I’m saddened to think of the challenges that are ahead for Londonderry Township, Middletown, the Lower Dauphin School District and the entire region.

“It is also a punch in the stomach for the men and women of the building trades who will never again work to refuel Three Mile Island. As a union electrician, my dad helped build Three Mile Island and it pains me that the product of his work will now sit idle.

“Perhaps most frustrating are my feelings about the inaction of the body I serve in, the state Legislature. I didn’t run for this office so I could name bridges and attend ribbon-cuttings; I ran to make a real impact on the lives of my constituents. I did believe, and still do, that House Bill 11 has the ability to do that. Unfortunately, some of my colleagues in the Legislature ran out the clock, and the loss of 675 family-sustaining jobs in Dauphin County is on them.

“I hope the conversation continues in the Legislature about the future of Pennsylvania’s nuclear industry. We still have eight reactors in this state supplying a large piece of our state’s electricity production. Time may have run out for Three Mile Island, but the fight is not over for the rest of our nuclear fleet.”

Sen. Ryan Aument (R-Lancaster), prime sponsor of Senate Bill 510 to provide aid to nuclear power plants, said, "“I recognize that there are many families and communities across Lancaster County and all of South Central Pennsylvania who are receiving devastating news this morning.

“To that end, I would like to acknowledge and thank the hard-working men and women who have diligently served our Commonwealth through their important work at TMI to safely produce electricity in an environmentally responsible manner to meet our 21st century energy needs.

“From the beginning, I have seen my role as co-chair of the Nuclear Energy Caucus to elevate a conversation around the important role of nuclear power in Pennsylvania, and then to ultimately put a proposal on the table that would preserve these assets.

“Unfortunately, it is clear at this point in time that there is not sufficient support to advance a proposal in time to preserve TMI.

“There are those who believe that the economic and market pressures that ultimately forced TMI to prematurely retire are isolated to that facility.

“Make no mistake, these pressures will soon be felt by all of the other nuclear plants across Pennsylvania, and unfortunately Exelon’s announcement only serves to reinforce that conclusion.

“The very thorough review completed by the Nuclear Energy Caucus has led me to believe that, absent federal or state action, the premature closure of the Commonwealth’s nuclear power plants will trigger severe impacts with regards to diminished grid resiliency, increased monthly electric bills, weakened portfolio diversity, and poorer air quality in this Commonwealth.

“I hope that I am wrong with respect to these economic and environmental consequences.

“I have been clear from the beginning that the policy goal has always been to retain the diverse energy mix in our state, prevent a monopolization of the electric grid that would expose ratepayers to excessive hikes in their energy bills, and preserve clean and efficient energy production.

“While I have great respect for the important benefits that competitive markets have provided Pennsylvania consumers, I also firmly believe that continuing to make long-term energy policy decisions based exclusively on short-term marginal cost is misguided.

“To that end, I remain committed to this issue. As such, I will continue to work with my colleagues and stakeholders to arrive at a better solution for ratepayers, the environment, and for our Commonwealth as a whole.”

Rep. Rob Matzie (D-Beaver) issued this statement on the shutdown-- It’s disappointing to hear that Exelon is continuing down this path, when a minimal investment in their own plant would afford us the time in the legislature to work on a solution that would be fair to all.

“Let’s be clear, the federal government has shirked its responsibility to the nuclear industry and foisted that burden onto the state.

“We have had less than two months to examine and internally debate legislation that is as complex and as far reaching as anything we’ve seen in decades. We responded with a sense of urgency by holding no less than four hearings and countless meetings focusing on legislation that, by any assessment, is not guaranteed to save TMI and does nothing to protect workers or the community.

“Make no mistake, when the nuclear industry asks the legislature to ‘value carbon-free energy,’ they mean asking the ratepayers of Pennsylvania for $3 billion. They should expect to have that request thoroughly vetted.

“What’s more, in my opinion, there has been significant movement toward a potential resolution over the last few weeks, making this announcement even more concerning.

“Regardless, I remain committed to working toward a policy that balances the burden on ratepayers with the objective of preserving jobs while ensuring that nuclear power remains a part of our diverse energy portfolio for years to come.

“As the co-chairman of the bicameral, bipartisan Nuclear Caucus and as the Democratic chairman of the Consumer Affairs Committee, there has been no member who has worked on raising the awareness of the importance of nuclear energy more than me.

“However, as a minority chairman and member of the minority party, I have no control over the legislative calendar, whether in committee or in the House chamber.

“Nevertheless, I will continue to pursue a solution that ultimately is given due consideration by our committee and our legislative body as a whole, a solution that solidifies our commitment to a diverse, reliable energy portfolio. Our workers and our communities deserve nothing less.”