Pennsylvania has been a hotspot for nuclear power since the advent of commercial nuclear power, which it pioneered with first power from the 60-MW Shippingport Atomic Power Station near Pittsburgh in 1957.
Today, the state, the second-largest nuclear power generator in the U.S., hosts eight operating reactors. These include Constellation’s 2.77-GW Peach Bottom Atomic Power Station in Delta, completed in 1974 and comprising two boiling water reactors (BWRs); Susquehanna Nuclear’s 2.6-GW Susquehanna Steam Electric Station in Berwick, which came online in 1985 and comprises two BWRs; Vistra’s 1.87-GW Beaver Valley Power Station in Shippingport, completed in 1987 and comprising two pressurized water reactors (PWRs); and Constellation’s 2.35-GW Limerick Generating Station in Pottstown, featuring two BWRs and completed in 1989.
But the state’s rich nuclear history has also showcased several innovative reactors, including Saxton, an experimental reactor shuttered in 1972, and Peach Bottom Unit 1, a helium-cooled, graphite-moderated reactor that operated until 1974. And despite the partial meltdown of Three Mile Island (TMI) Unit 2 in 1979, TMI 1, now owned by Constellation, continued to operate until it was permanently closed in 2019. (Microsoft earlier this month announced a deal to restart TMI, potentially buying all power from the 835-MW reactor for at least 20 years.)
Alongside these reactors, the state has historically hosted a burgeoning civil nuclear industry comprising advanced research institutions, robust supply chains, and skilled workforce development programs. The state is targeting a solid revival of these industries as interest in new nuclear perks up. In October 2023, for example, Westinghouse launched a new design and manufacturing facility near downtown Pittsburgh that will house engineering and licensing operations, testing, prototype trials, business development, and sales for its flagship microreactor, eVinci .
But while promising, a nuclear revival in Pennsylvania comes amid a series of significant transformations in the state, which participates in the PJM Interconnection competitive market, as Max Drickey, Energy Policy director at Team Pennsylvania, told POWER in an exclusive interview. Team Pennsylvania, a public-private partnership between the state and industry, is tasked with the significant mission of bringing together various stakeholders to address critical issues affecting Pennsylvania’s economy .
POWER asked Drickey about how the state perceives challenges and opportunities as new prospects and enthusiasm for nuclear begin to unfold.
POWER: Max, would you start by explaining the role of Team Pennsylvania and how it fits into the state’s energy landscape?
Max Drickey: This is a great place to start. Team Pennsylvania has been around for 28 years now. It’s a 501(c)(3) nonprofit and nonpartisan organization focused on Pennsylvania’s long-term economic health. T he sitting governor of Pennsylvania [currently Gov. Josh Shapiro (D)] serves as one of the co-chairs of our board of directors. The other chair is Pennsylvania business leader. Currently, it’s Brian Jackson, a Managing Partner and Chair at McNees Wallace.
Team Pennsylvania’s board is a public-private partnership, and we conduct all of our work in public-private partnership, with a deep belief that some of the most complex issues in Pennsylvania’s economy require collaboration. Energy transition is a perfect example of work that is not the responsibility of the private sector or government alone. But it’s also a topic that is frequently caught up in the political fray. Team Pennsylvania’s role as a neutral convener and broker allows us to bring together often divergent views working toward a long-term shared vision. We’d argue that energy conversations are happening in a more inclusive way and with a broader coalition of stakeholders committed to Pennsylvania’s energy economy thanks to Team Pennsylvania’s role.
POWER: Pennsylvania represents a truly interesting model for nuclear development, given that it operates within PJM, a competitive wholesale power market. This presents unique challenges and opportunities for nuclear power. How is the state navigating this to balance support for both its existing nuclear fleet and future nuclear innovations?
Max Drickey: One of the key factors informing Pennsylvania’s approach to both our incumbent nuclear generation and the future of those assets is the reality that our energy market is deregulated. This means that we don’t have the luxury that other states have—where they can provide incentives to vertically integrated utilities to shift their generation capacity. Instead, we have to be more strategic, more inventive, and a lot more careful about making sure we convene the right strategic stakeholders around these questions.
We need to pursue opportunities that make sense for our economy. This has shaped Team Pennsylvania’s focus over the last several years on areas like industrial decarbonization and behind-the-meter power generation for sectors such as data centers and chemical facilities. What might seem like a strategic or structural disadvantage—operating in a deregulated market without integrated utilities—can actually become an advantage. Pennsylvania can serve as a proving ground for novel use cases for emerging technologies.
Moreover, ensuring the longevity of these incumbent assets is crucial. The power purchasing agreements we’re seeing, like those involving Talen Energy and Amazon Web Services, demonstrate that there is demand. It’s really a matter of making sure we push the door open further now that it’s been cracked.
POWER: Compared to so many other states looking intently at nuclear, Pennsylvania has the benefit of a rich nuclear history and substantial infrastructure. Would you explain why this is poses a differentiator for the deployment of small modular reactors (SMRs), microreactors, or new nuclear applications to support new energy-intensive loads, such as data centers and steel manufacturing?
Max Drickey: So, let’s take a half step back for a second because I think it goes beyond just customer applications. You have to take a broader look when thinking about Pennsylvania’s role in the nuclear space. It goes back to the 1930s, not just in innovation and proving up this technology but also in developing the workforce, supply chains, and advanced forging capacity. You know, America’s entire nuclear industry really runs through Pennsylvania.
And so, if we’re talking about SMRs or microreactors that are going to be built at scale to drive the cost curve down, Pennsylvania stands to benefit. If we’re discussing deployment opportunities, centralizing and consolidating supply chains , Pennsylvania makes a lot of sense. There are significant cost savings when you keep the production local.
Another important point is that Pennsylvania has a lot of retired power assets. There’s a 2022 Department of Energy [DOE] study that identified around 11 sites with large-scale grid access already in place. This is tremendously interesting and important, especially when we hear from PJM about reliability considerations. Texas isn’t the only grid that has experienced blackouts and brownouts in recent years, and there’s every indication that these issues will continue across our system. The Northeast is no exception.
Turning to that customer base, as exposure to the data center question is increasing, particularly in states like Virginia, I think developers are going to see that there are opportunities elsewhere. Pennsylvania is working hard to modernize broadband infrastructure and prepare sites . And, as you know well, the power demands of these facilities are going to be enormous—not just hundreds of megawatts, but gigawatts. What strain does that place on the Northeast, on the PJM region? We’re not entirely sure what the consequences will be, so making sure that we’re regrading the landscape to put nuclear on a level footing with other forms of electricity generation is going to be important.
If we are talking about the steel industry as well, there’s been a lot of talk about the future of electric arc furnaces, and the increasing role that recycled steel is going to play in our transportation infrastructure. With all the infrastructure that was promised and is coming down the pike with the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) and things like that, there’s a tremendous ceiling for new potential. Another one of Team Pennsylvania’s partners, Shell Polymers, has recently finished constructing a multibillion-dollar project in Beaver County. This facility draws hundreds of megawatts of electricity, has its own generation capacity on-site in addition to grid connections. To the extent that Pennsylvania wants to and needs to stay at the heart of American industrial prowess, nuclear on-site and behind-the-fence generation is going to be a key part of that.
POWER: Momentum for nuclear is also being driven in large part by decarbonization. Pennsylvania, historically a major coal producer and a substantial coal power generator, has moved to achieve net-zero greenhouse gas emissions by 2050 under its Climate Action Plan. It is also working to reduce industrial emissions, for example, under the RISE PA project. Where do you see nuclear innovation fitting into these goals?
Max Drickey: Heavy industry remains central to Pennsylvania’s economy, and as a result, how Pennsylvania embraces the energy transition will depend in large part on how it embraces industrial decarbonization. The state Department of Environmental Protection has already identified and is marketing 11 sites that hosted coal generating stations—some of which are able to be repowered with new nuclear assets. Pennsylvania policymakers are investigating using state funds to make those sites and others like them more attractive to new development. Team Pennsylvania is learning from our friends at the DOE national labs and in the nuclear industry about the benefits communities stand to gain from repowering these sites, and we are watching very closely as other states pursue a coal-to-nuclear transition.
But as you say, there are other, non-power related areas where nuclear can have an impact. There is no question that nuclear power enables zero-carbon fuels like hydrogen—and Pennsylvania is poised to help tell that story. Pennsylvania was the only state to be awarded two federally designated hydrogen hubs—if and when hydrogen production takes off throughout the region, throughout the country, Pennsylvania nuclear absolutely stands to benefit. The goal of the Team Pennsylvania energy collaborative is to [identify synergies] between different energy technologies, understanding where they can complement each other.
POWER: How important are public-private partnerships in advancing new nuclear in Pennsylvania?
Max Drickey: It’s incredibly important, especially when it comes to the promise of smaller-scale projects. If we’re not talking about large reactors like the gigawatt-scale reactors or building an AP1000 every three years, the importance of public-private partnerships is even greater. The policy environment for nuclear has changed at the federal level—for instance, the U.S. Congress passed and President Biden signed the ADVANCE Act to clarify the [Nuclear Regulatory Commission’s (NRC’s) mandate and make the application review process more affordable for project developers . But there is still room for public-private work at the level of the state.
One of the things we’re investigating is whether there are opportunities for efficiency gains in these applications. We realize there’s a need for a statewide effort on site permitting. A public-private enterprise to pursue permits for several nuclear projects across multiple sites offers savings in dollar terms but also in time and human capital , savings that aren’t realized when project developers go it alone .
When we talk about this opportunity, it doesn’t have to be limited to the state of Pennsylvania. It can involve a consortium of environmental interests, industry, consumers, developers, and local communities. I believe the future of flexible nuclear technologies, whether it’s SMRs or microreactors, will require a village mentality to get the costs down.
POWER: How is Pennsylvania addressing the challenges of deploying nuclear power competitively within a deregulated energy market?
Max Drickey: So, as we discussed at the top, one of the realities of deploying nuclear in Pennsylvania is that if you’re going to try to sell it to a retail customer on the grid, it has to be competitive on a price-per-kilowatt basis with everything else out there. And so, one of the challenges—and I think this is true of a lot of places—is how can we stack efficiencies? How can we co-locate?
For example, we have at least 11 retired power plant sites that are ripe for repowering with nuclear assets. Is there any way we can co-locate generation with some other industrial process, like a data center? And, to be honest, there are developers looking at doing just that. Returning to the data center conversation, I think that’s the easiest place to touch on where we’ve had conversations or been in rooms where developers have said, “Our plan is to deploy a gigawatt scale of generation capacity with the option or space for permitting additional generation capacity, should future site owners need it.” When you think about that kind of scale, that’s pretty amazing.
Now, you want to talk about challenges, too. One of the things with advanced nuclear is there’s a bit of a skills gap. Workforce readiness is going to be a big part of making new nuclear a reality . We’re fortunate to work with Pittsburgh Technical, a nuclear consulting firm that is developing a curriculum for technicians to prepare them to work in some of these next-generation Gen IV reactors. We’d love to see that kind of curriculum deployed at Penn State, which has a nuclear engineering program.
But there are other lower-hanging fruits to consider, like welding certifications for folks in Washington and Greene counties so they can work in the construction of some of these assets. That’s important as well.
When it comes to public acceptance—and returning to a point we touched on earlier—I think we are on the cusp of a real sea change here. It’s not just about the promise of new technology; it’s also about what it means for communities. When you visit a nuclear facility and see the training facilities, you understand just how many people from the area work there, maybe not necessarily full-time, but it touches many different families. There aren’t many other industries these days where the same thing can be said.
POWER: There’s been some discussion about reviving Three Mile Island Unit 1, which was shuttered in 2019 for economic reasons. Would you discuss what’s changed, and why it would be relevant for Pennsylvania’s priorities?
Max Drickey: Well, I think what makes this interesting is that Three Mile Island (TMI) is a bit of a bellwether. It shows that when it comes to electricity and energy, we’re not just talking about price anymore. That’s not the end of the discussion. Carbon intensity is one factor, and reliability is another. Energy considerations go far beyond the residential consumer market.
There’s a growing understanding, not just in the industry but also among the public, that energy is a dominant driving force of our economic and social potential. The serious discussions currently taking place about the future of TMI Unit 1 show that nuclear skeptics, both outside and inside the industry, are being proven wrong. The old lessons and models are not indicative of where things are headed, either in the short term or the long term.
POWER: What role do legislators have to play in this, and how sharp is their intent?
Max Drickey: Just recently [in July 2024], the Pennsylvania General Assembly restarted its nuclear caucus, an initiative that had been mostly dormant for the last couple of years. From Team Pennsylvania’s perspective, we are interested in these energy areas where parties can set aside ideological differences. We can bring environmental groups and energy companies together on the same side of the table. Nuclear energy in Pennsylvania is clearly one of these areas, along with hydrogen and carbon capture and management, where there is a real interest and willingness to learn more and refine strategies.
I think there have been some significant revisions in the Governor’s proposals for the future of the alternative energy portfolio standards. These revisions aim to provide additional benefits to zero-carbon electricity coming from nuclear, which I think is a step in the right direction. So, I think Pennsylvania is rightly treating nuclear as one part of a diverse energy portfolio, but it’s also a component that has perhaps been neglected from a policy perspective for a long time. It’s time to revisit that.
POWER: Finally, are there any other major areas or institutions that our readers should pay attention to in Pennsylvania regarding nuclear development?
Max Drickey: I think one of the opportunities I’d like to mention involves Penn State, a strong partner and whose president, Dr. Neeli Bendapudi, sits on Team Pennsylvania’s Board of Directors . Penn State is pursuing a research reactor project in conjunction with Westinghouse, with the ambition to be the first university to field a microreactor. This demonstrates that it doesn’t necessarily require an industrial superpower, like GE in the 1990s, to be the first to deploy such technology.
I believe Pennsylvania would love to be at the forefront of deploying this technology. However, given the structural realities we’re dealing with, our focus may not necessarily be on being the first. Instead, I believe we are going to be the best case for the deployment of this technology when it comes to unlocking its potential for industry, consumers, and the downstream effects for manufacturers and the export potential for some of our strategic partners worldwide.
I think Pennsylvania is just as important a state to keep an eye on as some of the leading states out west.
Source: Power Magazine
