‘Historic Procurement’ Will See Constellation’s Nuclear Plants Provide Power For US Government Agencies
Power company Constellation, which operates the largest fleet of commercial nuclear power plants in the US, has been awarded more than $1bn (€970m) in combined contracts by the US General Services Administration (GSA) to supply power to more than 13 government agencies.
Under one of the contracts, which runs for 10-years and is worth $840m, the largest in GSA history, Constellation will supply the GSA with more than 1 million megawatt hours a year, beginning in 2025.
A portion of the power will come from investments Constellation will make to increase output at its nuclear plants.
GSA said the “historic procurement” locks in a cost-competitive, reliable supply of nuclear energy over a 10-year period, accelerating progress towards a carbon-free energy future while protecting taxpayers against future price increases.
The deal is the biggest energy purchase in the history of the GSA, which constructs and manages federal buildings, and is among the first major climate-focused energy agreement by the US government to include electricity generated from existing nuclear reactors.
Baltimore, Maryland-based Constellation said that for many decades its fleet of 21 nuclear power plants at 15 sites* has provided 24/7 carbon-free, reliable, American-made energy to millions of families and institutions
“Frustratingly, however, nuclear energy was excluded from many corporate and government sustainable energy procurements,” said Constellation president and chief executive officer Joe Dominguez.
Powerful Example Of ‘How Things Have Changed’
“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.”
Constellation and its partners will add approximately 1,100 MW of clean energy by 2028, enough energy to power over one million homes.
The company has already announced the signing of a power purchase agreement with Microsoft, a 20-year deal that will also restart the long-shuttered Unit 1 of the Three Mile Island nuclear power station in Pennsylvania, which is being renamed Crane.
The energy will be supplied to government agencies including the Social Security Administration, the Army Corps of Engineers, the Department of Veterans’ Affairs, the Department of Transportation, the US Mint and the Federal Bureau of Prisons.
Constellation was also awarded a $172m energy savings performance contract to perform energy savings and conservation measures at five GSA-owned facilities in the National Capital Region.
* Braidwood, Byron, Calvert Cliffs, Clinton, Crane (formerly Three Mile Island), Dresden, FitzPatrick, LaSalle, Limerick, Nine Mile Point, Peach Bottom, Quad Cities, Ginna, Salem and South Texas.
