Constellation wins $1 billion contract to supply nuclear energy to the US government

Constellation Energy announced on Thursday that it had been awarded contracts worth a record-breaking $1 billion to supply nuclear energy to the U.S. Government.

As part of an agreement with the U.S. General Services Administration, Constellation, America's largest nuclear power plant operator, will provide electricity to over 13 federal agencies.

The GSA estimated the contracts will begin on April 25 and include over 10 million Megawatt-hours of electricity over a period of 10 years, which is equivalent to powering over 1 million homes each year.

The purchase will provide electricity to 80 federal buildings located in the PJM Interconnection. This is a regional transmission company that serves parts of 11 mid Atlantic and Midwest states, as well as the District of Columbia. Some of the facilities receiving power are the U.S. Department of Transportation and the Federal Reserve Board of Governors.

Constellation says the agreement will allow it to extend licenses for existing nuclear plants, and invest in equipment and technology which will increase production by approximately 135 megawatts.

Constellation's president and CEO, Joe Dominguez said that the investments made as a result will ensure the reliability of these plants for many decades and bring new, clean nuclear power to the grid, while making the most of taxpayer dollars.

The GSA stated that in light of the uncertainty surrounding future electricity prices, and the soaring demand for power from data centers and AI equipment, the contracts would provide federal agencies with budgetary security by locking in electricity costs for 10 years.

Robin Carnahan said that the deal shows "how the federal governments can work with major corporations to spur new nuclear energy capacities and ensure a reliable supply of affordable clean energy for all."

(source: Reuters)