Constellation Energy Secures Historic Contract to Supply Carbon-Free Electricity to Federal Agencies

The U.S. General Services Administration (GSA) on Jan. 2 announced a long-term purchase contract with Constellation New Energy Inc. to procure emissions-free electricity for federal agencies. This marks GSA’s largest energy procurement and is estimated to comprise more than 10 million megawatt-hours over the contract’s ten-year term.

The measure will enable the company to extend the licenses of existing nuclear plants and make improvements that could increase output by about 135 megawatts. GSA will procure 2.4 million MWh of this new capacity over the contract’s duration.

Under a $840 million contract, GSA will receive more than 1 million megawatt hours annually starting this year, according to Constellation. Further, under a $172 million Energy Savings Performance Contract, the company will pursue energy savings and conservation measures at five GSA facilities in the National Capital Region. These include weatherization, window inserts, LED lighting, and upgrading to more energy-efficient HVAC systems. Additionally, electric boilers and heat pumps will be installed at four buildings in Washington D.C. to convert them from steam power to electricity to meet heating requirements.

The federal government is the largest energy consumer with over 300,000 buildings and 600,000 vehicles. Constellation Energy will supply electricity to 80 federal facilities within the PJM Interconnection transmission area, covering eleven states in the Midwest and Mid-Atlantic.

Technology companies are turning to nuclear power to help them meet growing electricity demand. In September, Microsoft signed a 20-year power purchase agreement with Constellation Energy to power data centers in the mid-Atlantic region from the 835 MW Three Mile Island nuclear facility in Pennsylvania that is set to restart after five years.