Chicago-based Exelon Corp. has announced it will close Three Mile Island, a power plant just down the Susquehanna River from Harrisburg, Pennsylvania, and site of the worst nuclear accident in American history. The site won’t close until 2019, but the end of Three Mile Island will mean the end of 675 jobs at the facility.
“Today is a difficult day, not just for the 675 talented men and women who have dedicated themselves to operating Three Mile Island safely and reliably every day, but also for their families, the communities and customers who depend on this plant to produce clean energy and support local jobs,” said Exelon president and CEO Chris Crane in a press release.
Why Three Mile Island Is Closing
Natural gas and the inexpensive power it creates has put a serious dent in demand for nuclear energy. This means Three Mile Island is struggling to turn a profit. In fact, the facility’s Unit 1 has been one of Exelon’s best performing power plants — but has still lost more than $300 million over the past five years. States like New York and Illinois have offered tax credits to help prop up struggling nuclear power providers, but no such help is coming for Three Mile Island.
The Closing’s Impact on the Surrounding Community
The closing of Three Mile Island will hit three major areas.
- Housing: The loss of 675 jobs is significant, and concern first and foremost goes to the families that are affected. It will be interesting to see how these job losses affect the housing market in 2019. Will these employees be reabsorbed into the job market, finding new positions locally, or will they seek employment elsewhere, leading to a glut of inventory on the market?
- Hospitality: Not only did Three Mile Island employ nearly 700 people, but it also served as a workplace for 1,500 contractors who would be brought in to make repairs and provide maintenance at the site. Those 1,500 contractors will no longer be staying in area hotels and eating at local restaurants.
- Tax Revenue: The site contributes about $1.1 million in property taxes each year. Presumably, the site can be sold and the new owner will be paying the tax bill, but the closing of Three Mile Island certainly brings some uncertainty to the situation.
Call on CENTURY 21 Core Partners
As the closing of the Three Mile Island nuclear power plant draws closer, we’ll be keeping an eye on the housing market and how the impending closure affects it. If you have any questions or need expert real estate guidance during this time, call on the team you’ll find at CENTURY 21 Core Partners. We have experienced, knowledgeable real estate professionals who can be a resource to you.
Contact us today about the Three Mile Island closing in Pennsylvania and how it affects our real estate market.