Contracts to Supply Clean Energy to Federal Agencies for a Decade
Constellation Energy (CEG) has announced a groundbreaking agreement to supply nuclear-generated electricity to over 13 federal agencies, marking a $1 billion milestone in clean energy contracts. The deal, revealed Thursday, represents the largest procurement of its kind and signals a significant step in the federal government’s commitment to sustainable energy solutions.
Powering Federal Facilities with Clean Energy
Under the agreement with the U.S. General Services Administration (GSA), Constellation will deliver more than 10 million megawatt-hours of electricity over the next decade, starting April 25, 2025. The power supply will span 80 federal facilities located within the PJM Interconnection, a regional transmission network covering parts of 11 mid-Atlantic and Midwest states as well as Washington, D.C.
The agencies benefiting from the deal include prominent entities such as the U.S. Department of Transportation, the Federal Reserve Board of Governors, and the Army Corps of Engineers. Collectively, the energy supplied will be sufficient to power more than 1 million homes annually, according to GSA estimates.
Driving Nuclear Innovation and Reliability
The agreement provides Constellation, the largest operator of nuclear power plants in the U.S., with the financial leverage to modernize its existing infrastructure. The company plans to extend the operational licenses of its nuclear plants and invest in new equipment and technologies, increasing output by approximately 135 megawatts.
Joe Dominguez, President and CEO of Constellation, emphasized the long-term benefits of the deal:
“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.”
Stability Amid Growing Demand
The GSA highlighted the agreement’s value in providing budgetary stability for federal agencies. With rising electricity demand from data centers and AI facilities, as well as uncertainty over future power costs, the fixed-rate 10-year contracts ensure predictable energy expenses for the government.
Robin Carnahan, GSA Administrator, praised the collaboration:
“This 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.”
This historic agreement underscores the vital role of nuclear power in the transition to sustainable energy, setting a benchmark for clean energy procurement across both public and private sectors.
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