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Constellation Energy Stock Jumps on $1 Billion in Deals With Federal Government
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Shares of Constellation Energy ( CEG ) surged Thursday after the company announced a pair of contracts with the federal government worth over $1 billion.
One of the contracts between Constellation and the General Services Administration (GSA) is a 10-year, $840 million deal for Constellation to supply over a dozen government departments across five states with nuclear power. The power will come from Constellation's existing facilities, along with investments the company plans to make to increase its production capacity.
Additionally, Constellation was has been awarded a $172 million deal to perform "energy savings and conservation measures" at five buildings in Washington, D.C. and Maryland. The measures will include energy conservation projects like new lighting, HVAC systems, and more.
Federal Government Joins Big Tech's Nuclear Push
The deals mean the federal government is joining the push into investing in nuclear energy that has also reached the tech industry in recent months. Constellation has agreed to restart one of the Three Mile Island reactors in Pennsylvania to provide power to Microsoft ( MSFT ), while Amazon ( AMZN ) and Google parent Alphabet ( GOOGL ) have also recently reached deals to buy nuclear energy.
"This agreement is another powerful example of how things have changed," Constellation CEO Joe Dominguez 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."
Constellation shares were up more than 6% in late trading Thursday, just over double where they were a year ago.
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