PJM Market Monitor Opposes Waivers for Constellation’s Three Mile Island Nuclear Restart

Why It Matters

The ruling will determine whether a major clean‑energy asset can enter PJM’s capacity market on schedule, affecting power prices, grid reliability, and the pace of nuclear‑based decarbonization.

Key Takeaways

• PJM monitor says waiver request fails FERC’s four‑criteria test.
• Crane nuclear unit needs transmission upgrades until December 2030.
• Constellation plans to transfer 760 MW CIRs from Eddystone units.
• DOE order forces Eddystone units to stay online, freeing CIRs.
• Approval could let Constellation bid nuclear capacity in PJM’s 2028 auction.

Pulse Analysis

Constellation Energy’s bid to restart the 835‑MW Crane nuclear plant—formerly Three Mile Island Unit 1—has become a focal point for PJM’s market oversight and federal regulators. The project, backed by a $1.6 billion contract to supply Microsoft’s data centers, promises a sizable source of carbon‑free capacity in the Mid‑Atlantic and Midwest. However, the plant’s full output hinges on extensive transmission upgrades, including 765‑kV and 500‑kV lines, that are not expected to be finished until late 2030. This timing mismatch creates a regulatory dilemma: how to align the plant’s commercial readiness with grid infrastructure.

At the heart of the dispute is Constellation’s request to transfer 760 MW of Capacity Interconnection Rights from its Eddystone fossil‑fuel units to Crane. The Department of Energy’s emergency order to keep Eddystone online has rendered those rights “free” for transfer, but PJM’s independent monitor, Monitoring Analytics, contends the waiver fails FERC’s four‑criteria test—particularly the requirement that a waiver not simply remedy a company’s own strategic choices. The monitor warns that moving CIRs after Decision Point II could invalidate prior studies, shift upgrade costs to other interconnection customers, and introduce uncertainty into the queue, potentially harming third parties.

If FERC grants the waivers, Constellation would be positioned to bid the nuclear capacity into PJM’s upcoming 2028/2029 capacity auction, which is likely to clear near the proposed $325 per MW‑day price cap. Securing this clean capacity could temper price spikes and support grid reliability, especially as the region grapples with intermittent renewable growth. Conversely, delays in transmission upgrades or a denial of the waiver could postpone the nuclear contribution, leaving PJM reliant on higher‑cost, carbon‑intensive resources. The outcome will therefore shape not only Constellation’s strategic roadmap but also broader market dynamics around clean‑energy procurement and capacity pricing.