NEW YORK/WASHINGTON, Jan 2 (Reuters) - Constellation
Energy ( CEG ) has been awarded a record $1 billion in contracts
to supply nuclear power to the U.S. government, the company said
on Thursday.
Constellation, the country's largest operator of nuclear
power plants, will deliver electricity to more than 13 federal
agencies, as part of the agreement with the U.S. General
Services Administration.
The GSA estimated that the contracts, set to begin on April
25, will comprise over 10 million megawatt-hours over 10 years
and provide electricity equivalent to powering more than 1
million homes annually.
The procurement will deliver electricity to 80 federal
facilities located throughout the PJM Interconnection, a
regional transmission operator that covers parts of 11
mid-Atlantic and Midwest states and the District of Columbia.
The U.S. Department of Transportation, the Federal Reserve Board
of Governors and the Army Corps of Engineers are some of the
facilities that will get the power.
Constellation said the deal will enable it to extend the
licenses of existing nuclear plants and invest in new equipment
and technology that will increase output by about 135 megawatts.
"The investments we make as a result of this contract will
keep these plants operating reliably for decades to come and put
new, clean nuclear energy on the grid while making the best use
of taxpayer dollars," Joe Dominguez, president and CEO of
Constellation said in a release.
The GSA said in the face of uncertainty over future
electricity prices and soaring power demand from data centers
and AI facilities, the contracts will provide federal agencies
with budgetary stability by keeping electricity costs fixed for
10 years.
Robin Carnahan, the GSA administrator, said the deal
demonstrates "how the federal government can join major
corporate clean energy buyers in spurring new nuclear energy
capacity and ensuring a reliable, affordable supply of clean
energy for everyone."