Venture to Buy Three Mile Island Reactor

A joint venture by Peco Energy Co. and British Energy said it will buy the lone operating reactor at the Three Mile Island power plant, site of the worst U.S. nuclear accident, for $100 million in cash. Only one of the two reactors at the plant near Harrisburg, Pa., is working. Three Mile Island’s owner, GPU Inc., will continue to own the reactor ruined by the 1979 accident. That reactor came within one hour of a complete meltdown and a release of fatal doses of radiation into the atmosphere. Since the accident, GPU has spent $100 million refurbishing the plant and retraining workers. The Nuclear Regulatory Commission now considers Three Mile Island one of the better-run U.S. nuclear plants. Many utilities interested in selling nuclear plants were waiting for the TMI sale to be completed, establishing a benchmark, before proceeding. The sale price consists of $77 million for nuclear fuel and $23 million for the reactor. Morristown, N.J.-based GPU expects to make up the difference between the sale price and the reactor’s $593-million book value by refinancing its debt.