Is CEG's GSA Deal As Big As it Sounds?

The TMI Unit Deal Had More Bite than Today's Hype

𝙒𝙝𝙖𝙩 𝙘𝙖𝙪𝙜𝙝𝙩 𝙢𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣? The small scale of the US General Services Administration (GSA) contracts with Constellation announced today.

While the announcement reads like a large number at “more than 1 million megawatt hours (MWh/yr) annually, beginning in 2025”, it amounts to 0.5% of the 208 MWh/yr Constellation expects to generate in 2025.

𝙒𝙝𝙮 𝙞𝙩 𝙢𝙖𝙩𝙩𝙚𝙧𝙨? It illustrates the appetite for positive nuclear headlines, especially following major announcements like Constellations deal with Microsoft to restart of Three Mile Island (TMI) Unit 1 and create the “Crane Clean Energy Center”.

However, the significance of these deals are dramatically different. TMI Unit 1 represents ~835 MW of capacity, while the GSA contract represents generation from ~120 MW of generation (assuming a 95% capacity factor), about 1/7th of the TMI deal.