The General Service Administration (GSA) announced a revolutionary long-term electricity purchase agreement to aid in the resilience and reliability of federal agencies while protecting against price increases.
The energy procurement is the largest in GSA history. It is estimated that it will comprise over 10 million megawatt-hours (kWhs) over the 10-year term of the contract and deliver electricity to 80 federal facilities throughout the PJM Interconnection, a region that covers portions of 11 mid-Atlantic and Midwest states and the District of Columbia.
In the face of uncertainty over future electricity prices and increasing electricity demand from data centers and AI facilities, the contract offers budgetary stability and protections from future price increases, according to a press release. The contract keeps electricity costs fixed for 10 years and bolsters the country’s domestic nuclear power industry.
The contract extends licenses of existing nuclear plants and invests in new equipment and technology that is projected to increase output by approximately 135 carbon-free megawatts over 10 years. Because of the contract, the agencies covered in the procurement can transition to 100 percent carbon pollution-free electricity by 2030.
The contract starts in April and will supply power to GSA and 13 additional entities including: the Washington Area Transit Authority; the Department of Veterans Affairs; the Architect of the Capitol; the 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; the U.S. Mint; and the Railroad Retirement Board.
Dave Lubach is executive editor of the facility market.
