LONDONDERRY TWP., Pa. (April 29, 2008)- A new report shows that the operation of the Three Mile Island Unit 1 Generating Station lowers wholesale electricity prices in Pennsylvania by $288 million per year.

Three Mile Island, located in Londonderry Twp., Dauphin County, is also shown to be capable of reducing peak hour electricity prices by $570,000 in a single high demand hour because it is a low-cost, baseload generation source, according to the report.

The report, titled “Economic and System Reliability Benefits of the Three Mile Island Generating Station,” is based on a study conducted by Bates White, LLC, an economics consulting firm. The study found that without the continued operation of TMI, Pennsylvanians would need increased generation from more expensive sources such as coal or natural gas. 

This increased dependence on fossil fuels would cause wholesale electricity prices to rise by at least $288 million per year, increasing consumer’s electricity bills, the report says. Consumers would likely pay an additional $570,000 for electricity in just a single peak hour examined in the study.  If Three Mile Island Unit 1 were retired from service, the resulting increase in carbon emissions would be equivalent to putting up to 1.3 million more cars on the road, the study says.

“We have always said that nuclear power is essential to lowering greenhouse gas emissions and maintaining a safe and reliable supply of electricity,” said Exelon Vice President Bill Noll, the senior executive at the Three Mile Island station. “This study proves it.”

The report found that TMI also directly contributes $99 million annually to Pennsylvania’s economy through the impact of employee compensation, in-state expenditures on goods and services needed to operate the plant, and local and state property tax payments, based on 2007 data.  This direct economic impact in turn stimulates increased economic activity elsewhere in Pennsylvania, creating jobs and increasing disposable income.  Overall, TMI creates approximately $142 million of economic activity annually in Pennsylvania and creates 659 full-time equivalent jobs in addition to the 530 jobs held by TMI employees.

The report was authored by economists Collin W. Cain, M.Sc., Jonathan A. Lesser, Ph.D., and Spencer Yang, Ph.D. from Bates White, LLC and Bernard E. Anderson, Ph.D., The Wharton School, University of Pennsylvania.

Printed versions of this report are being delivered to local newsrooms this week. The report can also be found on Three Mile Island’s Website, www.ThreeMileIslandInfo.com <http://www.ThreeMileIslandInfo.com>, in the economic benefits section. 

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Exelon Corporation is one of the nation’s largest electric utilities with approximately $19 billion in annual revenues.  The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic.  Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and Pennsylvania and natural gas to approximately 480,000 customers in the Philadelphia area.  Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.