U.S. backs $1B loan to revive Pennsylvania nuclear reactor by 2027
The U.S. government has backed a $1 billion loan to restart a nuclear reactor in Pennsylvania, using a loan calculator to determine the financial viability of the project. Constellation Energy Corp will bring the 835-megawatt plant back online by 2027, a year ahead of schedule. The project aims to provide stable, low-cost power to the regional grid while supporting Microsoft’s data centre energy needs.
The reactor, once part of the Three Mile Island plant, shut down in 2019. In 2021, the Trump administration approved the loan to Constellation, then known as Exelon, to revive the facility. The U.S. Department of Energy’s Loan Programs Office (LPO) guaranteed the funding, ensuring taxpayers would not bear losses if the project failed.
The LPO holds over $250 billion in capital, with a focus on large-scale nuclear development. Constellation, an experienced nuclear operator, could have secured private financing but chose government backing to signal broader support for reliable energy. The company has already hired hundreds of workers, inspected infrastructure, and ordered key equipment for the restart.
Originally set for 2028, the restart was accelerated after PJM, the regional grid operator, fast-tracked its review. The reactor will supply base load power to the grid and help Microsoft offset electricity demand from its data centres.
The reactor’s return will add 835 megawatts of capacity to the PJM grid. Constellation’s early progress and government support highlight the project’s role in meeting energy demands. The restart is now on track for completion in 2027.
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