Groundbreaking Electricity Contract Secured by General Services Administration

January 02, 2025

Significant pollution-free electricity acquisition for federal agencies in various Mid-Atlantic and Midwest states, along with the District of Columbia, will represent the largest energy acquisition in GSA history

WASHINGTON — The U.S. General Services Administration (GSA) has today revealed a momentous long-term electricity purchase, which includes carbon pollution-free electricity (CFE) from Constellation New Energy, Inc. This transaction signifies GSA’s inaugural long-term, multi-agency electricity acquisition, part of which comprises bundled CFE, aimed at enhancing resilience and reliability for federal bodies while safeguarding against price surges.

This energy acquisition ranks as the most substantial in GSA’s record. GSA anticipates it will total over 10 million megawatt-hours (kWhs) throughout the ten-year duration of the contract, sufficient to supply electricity for more than one million households each year. This initiative will provide power to 80 federal establishments scattered throughout the PJM Interconnection territory, a regional transmission operator (RTO) that serves sections of eleven Mid-Atlantic and Midwest states, plus the District of Columbia.

“This groundbreaking acquisition secures a competitive, dependable supply of nuclear energy for the next 10 years, promoting forward movement towards a carbon-free energy future while shielding taxpayers from impending price escalations,” stated GSA Administrator Robin Carnahan. “We’re showcasing how the federal government can collaborate with major corporate clean energy purchasers in fostering new nuclear energy capacity and guaranteeing a consistent, economical supply of clean energy for all.”

Given the uncertainty surrounding future electricity pricing and the rising demand for electricity from data centers and AI facilities, for instance, this contract assures federal agencies of financial predictability and safeguards against future price hikes by fixing their electricity expenditures for 10 years, while concurrently supporting the domestic nuclear sector. These nuclear establishments will function safely and responsibly to uphold public health, safety, and the environment, aligning with the U.S. government’s objectives and the 2024 nuclear energy action framework.

The contract will empower Constellation to prolong the licenses of existing nuclear facilities and invest in new technologies and apparatus to enhance output by approximately 135 pollution-free megawatts. GSA will acquire 2.4 million megawatt-hours (MWHs) of this enhanced nuclear capacity (along with the accompanying Energy Attribute Certificates) over the lifespan of the 10-year contract. Together with the existing CFE in the electrical grid, this purchase will enable the covered agencies to shift to 100% carbon pollution-free electricity (CFE) by 2030.

“This agreement sends a robust message that nuclear energy must remain a vital component in supplying clean, reliable, affordable, and secure energy to power our nation’s infrastructure and economy in an era of escalating demand,” remarked Joe Dominguez, president and CEO, Constellation. “The investments we undertake as a result of this contract will ensure these plants can operate dependably for decades to come and introduce new, clean nuclear energy into the grid, all while optimizing taxpayer investments.”

The acquisition will furnish power to GSA and 13 other 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. The contract is scheduled to commence in April 2025.

“Constantly available, secure, clean nuclear energy is widely acknowledged as crucial for a reliable and cost-effective low-carbon electric grid,” asserted Maria Korsnick, President & CEO of the Nuclear Energy Institute. “GSA’s acquisition of 2.4 million MWh of electricity over the next decade from Constellation’s nuclear facilities builds upon the commitments from both the private and public sectors to invest in dependable, clean energy while fostering innovation and growth within the nuclear industry.”

The procurement is modeled after cutting-edge long-term CFE acquisition strategies that have been adopted by extensive private-sector corporate clean energy purchasers, while also advancing the Biden-Harris Administration’s objectives for clean and carbon-free energy.

The Clean Energy Buyers Association (CEBA) commends the announcement issued by CEBA members, the US General Services Administration and Constellation, regarding a significant clean firm power purchase. “Leveraging the procurement power of more than a dozen agencies within the US Federal government to promote low-cost, reliable, carbon-free energy sources like nuclear presents a strong signal to the wider market to drive new generation investment and develop new infrastructure to support it,” remarked Rich Powell, CEO of CEBA.

“It’s not only industry that is acknowledging the significance of clean, dependable, and economical nuclear energy,” noted Jeremy Harrell, CEO of ClearPath, a nonprofit focused on innovative policy solutions for clean energy and manufacturing. “The federal government’s pledge to utilize nuclear energy to supply 14 government agencies from Constellation’s nuclear fleet illustrates how the public and private sectors can collaborate. As the demand for electricity grows in the U.S., this partnership can serve as a blueprint to hasten power upgrades at existing nuclear sites and facilitate the construction of new nuclear reactors.”

Housing more than 300,000 buildings and 600,000 vehicles, the federal government stands as the largest energy consumer in the nation. The Federal Sustainability Plan aims to attain net-zero emissions for federal operations by 2050, transitioning towards zero-emission vehicles, energy-efficient buildings, and CFE. Specifically, the government aspires to achieve 100% CFE by 2030, with at least half of it being locally sourced clean energy to meet demand aligned around the clock. Over the last three years, the Administration has constructed a clean and carbon-free electricity procurement framework in collaboration with energy providers across 36 states that will see the federal government increase its current clean and carbon-free electricity match from 40% to 70% by 2027, on the path to reaching 100% by 2030.

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About GSA: GSA offers centralized procurement and shared services for the federal government, managing a national real estate portfolio encompassing nearly 370 million rentable square feet, supervising over $100 billion in products and services through federal contracts, and providing technology services benefiting millions across various federal agencies. GSA’s mission is to ensure the optimal delivery of services.

customer satisfaction and worth in real estate, procurement, and technological solutions for the government and the citizens of America. For additional details, visit GSA.gov and connect with us at @USGSA.

About Constellation New Energy: A Fortune 200 enterprise based in Baltimore, Constellation Energy Corporation (Nasdaq: CEG) stands as the largest provider of clean, emissions-free energy in the nation and a prominent vendor of energy products and services to corporations, households, community groups, and public sector clients throughout the contiguous United States, inclusive of three-fourths of Fortune 100 firms. With an annual production that is nearly 90% devoid of carbon, our hydroelectric, wind, and solar installations, alongside the nation’s most extensive nuclear fleet, possess the generating capacity to supply power to approximately 16 million residences, contributing around 10% of the country’s clean energy. We are further hastening the nation’s conversion to a carbon-neutral future by assisting our clients in achieving their sustainability objectives, establishing our own ambitious target of attaining 100% carbon-free generation by 2040, and by investing in promising emerging technologies aimed at abolishing carbon emissions across all sectors of the economy. Follow Constellation on LinkedIn and X.