Orrick, Herrington & Sutcliffe LLP
10/01/2024 | Press release | Distributed by Public on 10/01/2024 10:06
Carbon Free Energy: Microsoft Signs 20 Year PPA with Constellation to Launch the Crane Clean Energy Center and Restart Three Mile Island Unit 1
Microsoft has signed a 20-year power purchase agreement with Constellation Energy that will pave the way for the launch of the Crane Clean Energy Center (CCEC) and restart of Three Mile Island Unit 1, which operated at industry-leading levels of safety and reliability for decades before being shut down for economic reasons five years ago.
Under the agreement, Microsoft will purchase energy from the renewed plant as part of its goal to help match the power its data centers use in PJM, the regional transmission organization covering 13 states, with carbon-free energy.
Orrick advised Microsoft.
THE IMPACT
This agreement will enable the restart of the 835 MW nuclear facility in Pennsylvania that was retired in 2019. It will bring a significant supply of net-new, reliable, carbon-free electricity to the PJM power grid, recognizing the importance of nuclear energy and complementing Microsoft's 34 GW contracted renewable energy portfolio in 24 countries.
"This agreement is a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative. Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids' capacity and reliability needs," said Bobby Hollis, VP of Energy, Microsoft.
A recent economic impact study commissioned by the Pennsylvania Building & Construction Trades Council found that the new CCEC will also create 3,400 direct and indirect jobs, add $16 billion to the state's GDP and generate more than $3 billion in state and federal taxes.
"The CCEC will support thousands of family-sustaining jobs for decades to come," said Rob Bair, President, Pennsylvania State Building and Construction Trades Council. "It will help make Pennsylvania a leader in attracting and retaining the types of reliable, clean energy jobs that will define the future."
"Pennsylvania's nuclear energy industry plays a critical role in providing safe, reliable, carbon-free electricity that helps reduce emissions and grow Pennsylvania's economy," said Governor Josh Shapiro. "Under the careful watch of state and federal authorities, the Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania's legacy as a national energy leader."
THE TEAM
The Orrick team that advised Microsoft consisted of Kyle Drefke, Teresa Hill, Jonathan Ayre and Austin Himes.