The U.S. General Services Administration (GSA) announced a historic long-term purchase of electricity, including carbon-pollution-free electricity (CFE), from Constellation New Energy Inc. The deal marks the GSA’s first long-term, multi-agency purchase of electricity and aims to increase resilience and reliability for federal agencies while protecting against price increases.
With a focus on new nuclear power, the energy procurement represents the largest in GSA history. The agency estimates that it will comprise over 10 million megawatt-hours (MWh) over the contract’s 10-year term, which would provide electricity equivalent to powering over 1 million homes annually. The procurement will deliver electricity to 80 federal facilities located throughout the territory of PJM Interconnection, a regional transmission operator (RTO) that covers portions of 11 mid-Atlantic and Midwest states and the District of Columbia.
“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 GSA Administrator Robin Carnahan. “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.”
With more than 300,000 buildings and 600,000 vehicles, the federal government is the nation’s largest energy consumer. This deal advances the Federal Sustainability Plan to achieve net-zero emissions across all federal operations by 2050.
The contract will enable Constellation to extend the licenses of existing nuclear power plants and invest in new equipment and technology that will increase output by approximately 135 megawatts. The GSA will purchase 2.4 million MWh of this new nuclear capacity (and the associated energy attribute certificates) over the life of the 10-year contract. Together with CFE already on the electrical grid, the purchase will enable the agencies covered in the procurement to transition to 100% CFE by 2030.
In the face of uncertainty over future electricity prices and increasing electricity demand from data centers and AI facilities, for instance, this contract provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years, while also continuing to bolster the domestic nuclear industry, according to the GSA.
The contract is set to begin in April. The procurement will supply power to the GSA and 13 additional entities, including:
- The Washington Metropolitan Area Transit Authority,
- Department of Veterans Affairs,
- Architect of the Capitol,
- Department of Transportation,
- Federal Bureau of Prisons,
- Federal Reserve Board of Governors,
- National Archives and Records Administration,
- National Oceanic and Atmospheric Administration,
- National Park Service,
- Social Security Administration,
- Army Corps of Engineers,
- U.S. Mint, and
- Railroad Retirement Board.