Constellation Signs $1 Billion Federal Nuclear Deal
Constellation Energy has landed a groundbreaking $1 billion agreement to supply nuclear-generated electricity to the U.S. government over the next decade. Announced Thursday, this deal marks the largest energy purchase in the history of the U.S. General Services Administration (GSA), which oversees federal building operations.
Powering Federal Operations with Clean Energy
Under this historic agreement, Constellation, the leading U.S. nuclear power plant operator, will supply over 10 million megawatt-hours of electricity. This output will power more than 13 federal agencies, equating to the energy needs of approximately one million homes annually. Agencies benefiting include the Department of Transportation, the Federal Reserve Board of Governors, and the Army Corps of Engineers, with power distributed across 80 federal facilities managed by PJM Interconnection, a grid operator serving over 65 million people.
A Milestone in Climate-Focused Energy Procurement
The deal is a significant step for the federal government in adopting climate-conscious energy solutions. Nuclear power, once sidelined due to concerns over safety and radioactive waste, is regaining prominence as a reliable, carbon-free energy source amid rising global energy demands.
“This agreement is another powerful example of how things have changed,” said Joe Dominguez, Constellation’s CEO. He highlighted that the funds will enable the company to extend the operational licenses of existing plants, invest in advanced technology, and enhance output by an additional 135 megawatts.
Long-Term Stability Amid Rising Energy Demand
With electricity prices fluctuating and energy demands surging from data centers and AI facilities, the 10-year fixed-rate contracts provide budgetary predictability for federal agencies. GSA Administrator Robin Carnahan underscored the deal’s importance in driving clean energy adoption and ensuring a stable and affordable energy supply.
Broader Impacts and Sustainability Efforts
In addition to providing nuclear power, Constellation will invest $172 million in energy efficiency improvements across federal buildings. Projects include weatherizing facilities, upgrading to LED lighting, and transitioning four buildings in Washington, D.C., from steam power to electric boilers and heat pumps.
This agreement not only secures a cleaner energy future for federal operations but also sets a precedent for corporate and government collaboration in expanding nuclear energy capacity. As the largest deal of its kind, it positions nuclear power as a cornerstone of sustainable energy strategies.
Constellation’s initiative exemplifies how public-private partnerships can pave the way for a reliable, affordable, and green energy future.
