Constellation and General Services Administration Form Historic Partnership

WASHINGTON — The U.S. General Services Administration (GSA) has entered into a groundbreaking agreement with Constellation New Energy Inc., a Baltimore-based nuclear energy developer, to supply power and energy services to federal agencies. Announced on Jan. 2, the two-part contracts, valued at over $1 billion, will serve 13 federal agencies in the PJM Interconnection region, which spans portions of 11 mid-Atlantic and Midwest states and the District of Columbia. 

A New Source of Power  

The centerpiece of the deal is a 10-year, $840 million contract under which Constellation will supply the GSA with more than 1 million megawatt-hours of electricity annually starting in April 2025. This includes carbon-free electricity, marking GSA’s largest-ever energy procurement and its first long-term, multi-agency purchase of clean energy. 

The agreement will deliver 10-million-megawatt hours over its term – enough to power more than one million homes annually. Beneficiaries include agencies such as the Social Security Administration, the Department of Veterans’ Affairs, and the National Park Service, with facilities in Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.  

“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 Robin Carnahan, GSA administrator in an agency statement. “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.” 

Under the contract, Constellation will enhance output from existing nuclear plants and explore new technologies, increasing energy output to 135 megawatts of carbon-free electricity. This energy will help federal agencies transition to 100% CFE by 2030, aligning with President Biden’s federal sustainability plan to achieve net-zero emissions for federal operations by 2050. 

Joe Dominguez, Constellation’s president and CEO, emphasized the deal’s significance:

“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,” Domingez said. “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.” 

Energy Efficiency Upgrades 

In addition to the power contract, GSA awarded Constellation a $172 million Energy Savings Performance Contract to implement conservation measures at five GSA-owned buildings in the National Capital Region. Upgrades include LED lighting, improved weatherization, window replacements and modernized HVAC systems to lower emissions and reduce energy costs.  

On top of the renovations, the four GSA buildings in Washington D.C., will transition from steam power to electricity by installing electric boilers and heat pumps. This transition is described as the most significant energy conservation measure of the project. 

The facilities slated for upgrades include the Elijah Barrett Prettyman U.S. Courthouse, the William B. Bryant Annex, the Orville Wright Federal Building and the Wilbur Wright Federal Building in Washington, DC, and the Harvey W. Wiley Federal Building in College Park, Maryland. 

Construction on these improvements is set to begin this month and will continue through 2029. 

“It’s not just industry that is recognizing the importance of clean, reliable and affordable nuclear energy,” said Jeremy Harrell, CEO of ClearPath, a nonprofit that develops cutting-edge policy solutions on clean energy and clean manufacturing innovation, in the GSA statement. “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.”

A Commitment to Clean Energy 

This partnership underscores the federal government’s commitment to clean energy and energy efficiency while stabilizing electricity costs for federal agencies. It also reflects broader goals under the 2024 government-established nuclear energy framework for action, which is aimed at advancing U.S. nuclear energy and tripling its output by 2050.