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Constellation gets $1 billion in contracts to supply US government nuclear power
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Constellation gets $1 billion in contracts to supply US government nuclear power
Jan 2, 2025 8:34 AM

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."

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