US Constellation has been awarded a $840 million ten-year contract to supply an estimated 10 million MWh of electricity to US federal facilities as part of the first-ever long-term multi-agency purchase of electricity by the US General Services Administration (GSA). The agreement to supply electricity to 80 federal facilities, set to begin April, is part of more than $1 billion in combined contracts awarded to Constellation by GSA to supply power to more than 13 government agencies and perform energy savings and conservation measures at five GSA-owned facilities
The procurement relates to the supply of electricity to federal facilities in the territory of regional transmission operator PJM Interconnection, which covers parts of 11 mid-Atlantic and Midwest states and the District of Columbia. Facilities to be include the Architect of the Capitol, the GSA, the Social Security Administration, the Army Corps of Engineers, the Department of Veterans’ Affairs, the Department of Transportation, the US Mint, the US Railroad Retirement Board, the National Archives & Records Administration, the Federal Bureau of Prisons, the Federal Reserve System, the National Park Service, the National Oceanic & Atmospheric Administration, and the Washington Metropolitan Area Transit Authority.
“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,” GSA Administrator Robin Carnahan said. “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.”
GSA said the purchase – part of which is “bundled CFE” (carbon pollution-free electricity) – will increase resilience and reliability for federal agencies while protecting against price increases. The US federal government’s more than 300,000 buildings and 600,000 vehicles make it the nation’s largest energy consumer. The Federal Sustainability Plan aims to achieve net-zero emissions for federal operations by 2050 by transitioning to zero-emission vehicles, energy efficient buildings and CFE, with the government seeking to transition to 100% CFE by 2030, at least half of which will be locally supplied clean energy to meet 24/7 hourly-matched demand.
According to GSA, the procurement is “modelled on the state-of-the-art long-term CFE procurement methods pioneered by large private-sector corporate clean energy buyers”. Under the procurement agreement GSA will purchase 2.4 million MWh of nuclear capacity added by Constellation via licence extensions and uprates (together with the associated Energy Attribute Certificates) during the 10-year contract. “Together with CFE already on the electrical grid, the purchase will enable the agencies covered in the procurement to transition to 100% carbon pollution-free electricity by 2030,” GSA said.
“For many decades, Constellation’s nuclear fleet has provided carbon-free, reliable, American-made energy to millions of families and institutions,” Constellation President & CEO Joe Dominguez said. “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 1100 MW of 24/7 clean energy by 2028, enough energy to power over one million homes.”
In September 2024, Constellation signed a 20-year power purchase agreement with Microsoft under which Three Mile Island NPP unit 1, which shut down in 2019, restarted as the Crane Clean Energy Centre. In December, Constellation announced a new retail pilot programme in Washington, DC to allow consumers to power their homes with 100% nuclear energy. The programme will match 100% of these customers’ electricity usage with Emission Free Energy Certificates generated at Constellation’s nuclear-powered clean energy centres in the PJM. The company plans to expand the programme to additional markets over 2025.
