The nuclear stocks today raise for more than 6% fueled by optimism following 10-year contract worth $840 million awarded by the U.S. GSA (General Services Administration) to Constellation Energy (CEG, Financial). The contract puts Constellation in a good position for future growth as additional revenue projected.
The $840 million contract, the largest in GSA history, will see Constellation supply over 1 million megawatt hours (MWh) annually to more than 13 federal agencies across five states and the District of Columbia, starting in 2025.
This agreement confirms government commitment to environment-friendly electricity by trusting nuclear as low-carbon power source advancing the transition to sustainable energy.
Constellation Energy now plans to increase its capital expenditure to increase its production capacity through “uprates” strategic investments to increase output by 135 megawatts. The upgrade will help Constellation Energy to provide a reliable and affordable source of nuclear power over the next ten years.
Joe Domingues, the CEO and President of Constellation stated, " 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".
Positive signals emerged from the market following the announcement. With this contract, Constellation stands geared up to deliver affordable, clean electricity to more than 13 government agencies.
You can make more informed investment decision by visiting GuruFocus now and deep dive into Constellation Energy's performance with charts, breakdowns, 30-year financial data, and more!
