Zinger Key Points
- Constellation Energy secures $1B+ in GSA contracts, including a $840M 10-year federal energy supply deal.
- Constellation Energy to enhance efficiency at GSA facilities with LED, HVAC upgrades, and electric heating transitions.
Constellation Energy Corporation CEG shares are trading higher on Thursday after the company disclosed that it secured over $1 billion in contracts from the U.S. General Services Administration (GSA).
These contracts involve supplying power to more than 13 federal agencies and implementing energy savings and conservation initiatives at five GSA-owned facilities in the National Capital Region.
In particular, Constellation has secured a 10-year contract valued at $840 million, marking the largest agreement in GSA’s history.
Beginning in 2025, the company will provide more than 1 million megawatt hours of electricity annually, with a portion of the energy generated from plant capacity enhancements, referred to as “uprates,” funded by Constellation.
Constellation will supply energy to multiple federal agencies, including the GSA, Social Security Administration, and Department of Veterans Affairs, across Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.
Apart from this, the company also secured a $172 million contract to enhance energy efficiency at five GSA-owned facilities in the National Capital Region through LED lighting, HVAC upgrades, and transitioning four Washington, DC, buildings from steam to electric heating.
Construction begins this month, lasting 42 months, with Constellation providing maintenance and training to ensure long-term energy efficiency and cost savings.
Joe Dominguez, Constellation President and CEO said “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.”
”In combination with the Crane restart announced previously, Constellation and its partners will add approximately 1,100 MWs of 24/7 clean energy by 2028, enough energy to power over one million homes.”
Investors can gain exposure to the stock via Strive Natural Resources and Security ETF FTWO and Strive Natural Resources and Security ETF UTES.
Price Action: CEG shares are up 6.59% at $238.45 at the last check Thursday.
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