Three Mile Island owner plans to close nuclear plant in '19

Exelon said that its operating costs for just one unit at the plant are high, further damaging Three Mile Island's financial viability.

If Exelon follows through on its threat, it would mean the Oyster Creek plant in Lacey Township, also owned by the Chicago energy giant, could outlast TMI, the site of the nation's biggest nuclear accident when it had a partial meltdown in 1979.

Three Mile Island employees 675 people, supplies power to 800,000 homes, and pays more than $1m in state income taxes, according to the company. In a press release announcing the Three Mile Island closure, Exelon suggested amending the state's portfolio standard, or creating a separate credit program for energy sources with no greenhouse gas emissions.

Other power generators that would benefit if the reactors shut down, however, have challenged NY and Illinois' nuclear payments in federal court, arguing the rules unfairly subsidize one fuel source in a federally administered competitive market and will boost ratepayer costs.

A coalition of free market groups against government intervention in the economy and many environmental groups opposed the measure on grounds that it would be effectively a subsidy and would takes resources away from wind and solar power.

And its future seems to hang on whether or not Pennsylvania lawmakers enact policies favorable to the nuclear industry, something officials with Illinois-based Exelon favor, but which have already generated opposition among other players in the energy industry.

The movie "The China Syndrome", about a fictitious near-meltdown at a California nuclear plant, came out two weeks before the real-life crisis at Three Mile Island. Pennsylvania ranks as the state with the second most nuclear capacity in the country, second only to IL. Three reactors in NY and one in IL are slated to close in 2017, and another five will shut down in 2018 before Three Mile Island's projected closure in 2019.

Demonstrators hold signs at the 32nd annual vigil in remembrance of the Three Mile Island disaster in Middletown, Pennsylvania, Mar. 28, 2011.

A policy idea that Exelon offered up as an idea to consider resembles a policy change that NY implemented in April and one that is scheduled to take effect in IL on Thursday to address the economic challenges plaguing the nuclear industry in their states.

It's becoming increasingly common for nuclear power plants in the U.S.to close in light of market conditions - as Bloomberg reported, at least five have shut down in the past five years.

A Pennsylvania power plant which triggered the worst nuclear disaster in United States history is to close, its owner says.

"We don't support a bailout that gives preferential treatment to nuclear energy", he said. "We are committed to working with all stakeholders to secure Pennsylvania's energy future, and will do all we can to support the community, the employees and their families during this hard period". Exelon, which had filed a formal notice with federal nuclear regulators to deactivate the Clinton and Quad Cities plants, withdrew its notice.

Closing Three Mile Island would have little or no effect on electricity bills, analysts say.

In mid-February, the Electric Power Supply Association, Dynegy, Eastern Generation, NRG Energy, and Calpine Corp. filed a federal lawsuit against the State of IL, challenging its nuclear subsidies too. Under state law, electric distribution companies and electric generation suppliers are required to supply 18 percent of their electricity from renewable sources by 2020.

"Though legislation has not yet been proposed in Pennsylvania, we are encouraged by the discussions going on in the state about the importance of nuclear", she said.