Constellation Wins Record-Setting Federal Government Clean Nuclear Energy Procurement

Rhea-AI Summary

Constellation (CEG) has secured contracts worth over $1 billion from the U.S. General Services Administration (GSA). The deal includes a record-breaking 10-year, $840 million contract to supply more than 1 million MWh annually of clean energy to 13+ government agencies starting 2025. Additionally, a $172 million Energy Savings Performance Contract was awarded for implementing energy conservation measures at five GSA facilities in the National Capital Region.

The power supply will partially come from planned nuclear plant uprates. The energy efficiency project includes LED lighting, weatherization, HVAC upgrades, and converting four DC buildings from steam to electric power. The construction will span approximately 42 months, starting this month.

The energy will be supplied to various federal agencies across Illinois, Maryland, New Jersey, Pennsylvania, and Ohio. Combined with the previously announced Crane restart, Constellation plans to add approximately 1,100 MWs of clean energy capacity by 2028.

Positive

• Secured record $840 million, 10-year power supply contract with GSA
• Additional $172 million contract for energy efficiency projects
• Will add 1,100 MWs of clean energy capacity by 2028
• Long-term guaranteed revenue stream from government contracts
• Expansion of nuclear power capacity through uprates

Negative

• Significant capital investment required for facility upgrades
• Extended 42-month construction period for efficiency projects

Insights

Energy Infrastructure Analyst

The $1 billion federal contract marks a pivotal shift in government energy procurement strategy, with the $840 million power supply agreement representing GSA's largest contract in history. The deal's significance extends beyond its monetary value - it's a transformative moment for nuclear energy's role in federal sustainability initiatives. The 1 million MWh annual supply commitment, coupled with Constellation's planned nuclear uprates, will add approximately 1,100 MW of baseload capacity by 2028.

The 10-year duration provides important revenue visibility and strengthens Constellation's market position. The contract effectively underwrites future nuclear plant investments and life extensions, similar to Microsoft's previous commitment. This type of long-term procurement creates a reliable revenue stream that can support capital-intensive nuclear operations and upgrades.

Sustainability Investment Strategist

The additional $172 million energy performance contract demonstrates a comprehensive approach to federal energy transformation. The retrofit projects targeting five major federal facilities will create multiple revenue streams through LED lighting, HVAC upgrades and critically, the conversion from steam to electric heating systems. This electrification initiative aligns perfectly with broader decarbonization trends and positions Constellation to capture growing demand for building energy transitions.

The 42-month implementation timeline provides steady project revenue through 2027, while the maintenance services component ensures recurring revenue opportunities. The contract's scope across multiple federal agencies indicates potential for similar deals across the government's vast real estate portfolio.

Federal Contract Specialist

This landmark procurement sets a new precedent in federal energy contracting. The deal's structure, involving 13 major government agencies across five states, demonstrates exceptional complexity and coordination. The contract's inclusion of nuclear power marks a significant policy shift, as federal sustainable energy procurements historically excluded nuclear generation. This change could influence future government contracts and create a template for other agencies.

The energy efficiency component's comprehensive scope, covering multiple historic federal buildings, suggests strong potential for similar modernization projects across the government's extensive property portfolio. The preventive maintenance and training provisions ensure long-term engagement and position Constellation for future contract opportunities.

Nation’s largest producer of emissions-free, reliable energy will supply electricity from nuclear energy and other sources while delivering energy efficiency solutions

BALTIMORE--(BUSINESS WIRE)-- Constellation (Nasdaq: CEG), the nation’s largest producer of clean, emissions-free, reliable energy, has been awarded more than $1 billion in combined contracts by the U.S. General Services Administration (GSA) to supply power to more than 13 government agencies and perform energy savings and conservation measures at five GSA-owned facilities in the National Capital Region. Constellation’s retail subsidiaries will provide the services to the GSA.

Under a 10-year, $840 million contract, the largest in GSA history, Constellation will supply the GSA with more than 1 million megawatt hours (MWh/yr) annually, beginning in 2025. A portion of the power will come from investments Constellation will make to increase plant output, known as “uprates.”

“For many decades, Constellation’s nuclear fleet has provided carbon-free, reliable, American-made energy to millions of families and institutions,” said Joe Dominguez, Constellation President and CEO. “Frustratingly, however, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed. Under this agreement, the United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets. In combination with the Crane restart announced previously, Constellation and its partners will add approximately 1,100 MWs of 24/7 clean energy by 2028, enough energy to power over one million homes.”

“This historic procurement locks in a cost-competitive, reliable supply of nuclear energy over a 10-year period, accelerating progress toward a carbon-free energy future while protecting taxpayers against future price hikes,” said GSA Administrator Robin Carnahan. “We’re demonstrating 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.”

The energy will be supplied to the Architect of the Capitol, the General Services Administration, the Social Security Administration, the Army Corps of Engineers, the Department of Veterans’ Affairs, the Department of Transportation, the U.S. Mint, the U.S. Railroad Retirement Board, the National Archives and Records Administration, the Federal Bureau of Prisons, the Federal Reserve System, the National Park Service, the National Oceanic and Atmospheric Administration, and the Washington Metropolitan Area Transit Authority, in locations the agencies own or operate in Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.

Constellation was also awarded a $172 million Energy Savings Performance Contract to perform energy savings and conservation measures at five GSA-owned facilities in the National Capital Region. The work implemented under the contract will include LED lighting, weatherization, window inserts and replacements and new and upgraded HVAC and building control equipment to improve energy efficiency, decrease emissions and save on energy costs at the Elijah Barrett Prettyman U.S. Courthouse, the William B. Bryant Annex, the Orville Wright Federal Building and the Wilbur Wright Federal Building all located in Washington, DC, and the Harvey W. Wiley Federal Building in College Park, MD.

In addition, the four buildings located in Washington, DC, will be converted from steam power to electricity through the installation of electric boilers and heat pumps to meet the buildings' heating requirements. The conversion upgrades will be some of the most significant energy conservation measures being undertaken as part of the project.

Project construction is scheduled to begin this month and will continue for approximately 42 months. Constellation will provide preventive maintenance services as well as ongoing training to GSA personnel to help ensure the newly renovated facilities maximize energy efficiency and cost-savings efforts.

For more information about Constellation’s energy solutions for government, business and residential customers, please visit constellationenergy.com.

About Constellation

A Fortune 200 company headquartered in Baltimore, Constellation Energy Corporation (Nasdaq: CEG) is the nation’s largest producer of clean, emissions-free energy and a leading supplier of energy products and services to businesses, homes, community aggregations and public sector customers across the continental United States, including three fourths of Fortune 100 companies. With annual output that is nearly 90% carbon-free, our hydro, wind and solar facilities paired with the nation’s largest nuclear fleet have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation’s clean energy. We are further accelerating the nation’s transition to a carbon-free future by helping our customers reach their sustainability goals, setting our own ambitious goal of achieving 100% carbon-free generation by 2040, and by investing in promising emerging technologies to eliminate carbon emissions across all sectors of the economy. Follow Constellation on LinkedIn and X.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250102204975/en/

Paul Adams

Constellation Communications

667-218-7700

paul.adams@constellation.com

Source: Constellation

FAQ

What is the total value of Constellation's (CEG) new GSA contracts in 2024?

Constellation secured contracts worth over $1 billion, including an $840 million power supply contract and a $172 million energy efficiency contract.

How much clean energy will Constellation (CEG) supply annually to GSA starting 2025?

Constellation will supply more than 1 million megawatt hours (MWh/yr) annually to GSA beginning in 2025.

How many government agencies will receive power under CEG's new GSA contract?

More than 13 government agencies across Illinois, Maryland, New Jersey, Pennsylvania, and Ohio will receive power under the contract.

What is the duration of Constellation's (CEG) energy efficiency project construction?

The energy efficiency project construction will continue for approximately 42 months, starting in 2024.

How much additional clean energy capacity will CEG add by 2028?

Constellation plans to add approximately 1,100 MWs of clean energy capacity by 2028, including the Crane restart.