Constellation Energy Corporation (NASDAQ: CEG) saw a rise in its stock price on Thursday following the announcement of securing contracts worth over $1 billion from the U.S. General Services Administration (GSA). These contracts involve providing power to more than 13 federal agencies and implementing energy-saving initiatives at five GSA-owned facilities in the National Capital Region.
One significant contract that Constellation sealed is a 10-year agreement valued at $840 million, setting a new record as the largest deal in GSA’s history. Starting in 2025, the company will deliver over 1 million megawatt hours of electricity annually, with a portion derived from plant capacity enhancements, known as “uprates,” funded by Constellation. The energy will be supplied to various federal agencies, including the GSA, Social Security Administration, and Department of Veterans Affairs, spanning across Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.
In addition to this major contract, Constellation also secured a $172 million deal to enhance energy efficiency at five GSA-owned facilities in the National Capital Region. The improvements will involve implementing LED lighting, HVAC upgrades, and transitioning four buildings in Washington, DC, from steam to electric heating. Construction is set to kick off this month, with a projected duration of 42 months. Constellation will provide ongoing maintenance and training to ensure sustained energy efficiency and cost savings.
Joe Dominguez, President and CEO of Constellation, expressed his satisfaction with the agreement, highlighting the government’s collaboration with private entities like Microsoft to support investments in reliable nuclear energy. This partnership allows Constellation to renew licenses and prolong the lifespan of critical assets. Additionally, alongside the previously announced Crane restart initiative, Constellation and its partners aim to introduce approximately 1,100 megawatts of round-the-clock clean energy by 2028, sufficient to power over one million households.
Investors looking to capitalize on Constellation Energy Corporation’s success can access the stock through Strive Natural Resources and Security ETF (NYSE: FTWO) and Strive Natural Resources and Security ETF (NYSE: UTES). As of the latest check on Thursday, CEG shares showed a 6.59% increase, trading at $238.45.
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Source:
Benzinga.com
