The U.S. General Services Administration (GSA) is making a historic long-term purchase of electricity — including carbon pollution-free electricity (CFE) — from Constellation New Energy, Inc. The largest in GSA history, the purchase marks GSA’s first long-term, multi-agency purchase of electricity and will increase resilience and reliability for federal agencies while protecting against price increases. Constellation was awarded more than $1 billion in combined contracts by the 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.
Under the 10-year, $840 million contract, Constellation will supply the GSA with an estimated 10 million megawatt hours (MWh/yr) annually, beginning in April 2025. The procurement will deliver electricity to 80 federal facilities located throughout the territory of PJM Interconnection, a regional transmission operator (RTO) that covers portions of 11 mid-Atlantic and Midwest states and the District of Columbia.
“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 federal government’s commitment to use nuclear energy to power 14 government agencies from Constellation’s nuclear fleet demonstrates how the public and private sectors can work together. As U.S. electricity demand grows, this partnership can serve as a model to accelerate power uprates at existing nuclear sites and the construction of new nuclear reactors.”
—Jeremy Harrell, CEO, ClearPath
Budgetary Stability, Protection From Price Increases
In the face of uncertainty over future electricity prices and increasing electricity demand, the contract provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years, while also continuing to bolster the domestic nuclear industry. These nuclear facilities will operate safely and responsibly to protect public health, safety, and the environment, consistent with the U.S. government’s goals and the 2024 nuclear energy framework for action.
The contract will enable Constellation to extend the licenses of existing nuclear plants and invest in new equipment and technology that will increase output by approximately 135 carbon-free megawatts. GSA will purchase 2.4 million megawatt-hours (MWHs) of this new nuclear capacity (together with the associated Energy Attribute Certificates) over the life of 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 (CFE) by 2030.
“This agreement sends a clear message that nuclear energy must continue to play an important role in providing clean, reliable, affordable and secure energy to power our nation’s infrastructure and economy at a time of rising demand,” said Joe Dominguez, president and CEO of Baltimore-based Constellation. “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.”
The procurement will supply power to GSA and 13 additional entities, including the Washington Metropolitan Area Transit Authority, the Department of Veterans Affairs, the Architect of the Capitol, the Department of Transportation, the Federal Bureau of Prisons, the Federal Reserve Board of Governors, the National Archives and Records Administration, the National Oceanic and Atmospheric Administration, the National Park Service, the Social Security Administration, the Army Corps of Engineers, the U.S. Mint, and the Railroad Retirement Board.
“It’s not just industry that is recognizing the importance of clean, reliable and affordable nuclear energy,” commented Jeremy Harrell, CEO of ClearPath, a nonprofit that develops policy solutions on clean energy and clean manufacturing innovation. “The federal government’s commitment to use nuclear energy to power 14 government agencies from Constellation’s nuclear fleet demonstrates how the public and private sectors can work together. As U.S. electricity demand grows, this partnership can serve as a model to accelerate power uprates at existing nuclear sites and the construction of new nuclear reactors.”
More Energy Saving Efforts
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.
