Constellation Energy and U.S. Department of State Sign Innovative Agreement That Will Spur Development of Solar, Wind Facilities
March 24 2011 - 2:50PM
Business Wire
Constellation Energy (NYSE: CEG) today announced it has signed a
first-of-its-kind federal contract that will help the U.S.
Department of State contribute to President Obama's executive order
to reduce federal-wide greenhouse gas emissions 28 percent by 2020
and encourage the development of two new renewable energy
facilities.
The Energy Savings Agreement (ESA) with Constellation will spur
job growth and wind and solar development in Pennsylvania and New
Jersey under a 20-year contract with the federal government. The
State Department and other federal government facilities covered by
the contract, including part of the White House campus, expect to
reduce greenhouse gas emissions associated with domestic
electricity consumption by approximately 30 percent to 35 percent
by December 2012 and during the term of the ESA.
“This innovative agreement serves as a model for federal agency
energy management with a cost-effective, public-private effort that
will create jobs through the development of clean energy
resources,” said Mayo A. Shattuck III, chairman, president and
chief executive officer of Constellation Energy. “We especially
appreciate this opportunity to work with the State Department on an
energy contract that supports President Obama’s clean energy goals
for the nation.”
The ESA is a long-term power purchase agreement with
Constellation Energy, which will provide an estimated 120,000 MWh
of energy annually to the State Department and other federal
government facilities. A unique aspect of the State Department
agreement is that it will encourage the development of new
renewable energy facilities. Constellation Energy plans to
construct a $50 million solar project on a 40-acre site in New
Jersey by mid-2012. The solar panels for the project will be
constructed by UNICOR, the federal prison industries service
established in 1934 to provide job skills training to inmates and
produce market-priced goods for the federal government.
Constellation Energy has also committed to purchase power produced
by a wind facility that will be developed in Pennsylvania under a
long-term power purchase agreement. It is anticipated that the two
renewable energy projects will create more than 250 construction
jobs and four to six permanent positions. Constellation Energy will
also supply to the State Department Green-e Energy certified
renewable energy certificates sourced from renewable energy
facilities located within the United States pursuant to the
ESA.
The ESA with the State Department was awarded to Constellation
Energy in response to the agency’s competitive request for
proposals last fall for innovative solutions to meet its
clean-energy objectives.
Constellation Energy’s Public Sector segment is focused on
addressing the unique challenges facing federal, state and local
government energy and procurement officials.
“This contract is a great example of how Constellation
Energy's sustainable energy management and contracting
expertise can result in innovative and integrated energy
solutions for federal agencies, allowing them to meet their
procurement, sustainability and security goals,” said Louis
Hutchinson, Constellation Energy’s senior vice president, Public
Sector.
Constellation Energy serves more than 150 federal agency and
institutional customer accounts with electricity and natural gas
supply, including more than 375,000 renewable energy credits,
approximately 1.7 decatherms of natural gas and approximately 6.9
million MWh of electricity to the U.S. Capitol, Kennedy Center,
Smithsonian Institution, FBI and Federal Reserve, among many
others.
In addition, Constellation Energy is a federally approved
provider of demand response services for both military and civilian
government agencies, enabling eligible federal sites to earn money
by shedding load during times of peak energy demand. Constellation
Energy is also one of seven National Super Energy Savings
Performance Contract (ESPC) suppliers chosen by the U.S. Department
of Energy to improve the efficiency of federal buildings through
energy retrofit projects, energy saving performance contracts and
deployment of renewable energy systems.
About Constellation
Energy
Constellation Energy (www.constellation.com) is a leading
competitive supplier of power, natural gas and energy products and
services for homes and businesses across the continental United
States. It owns a diversified fleet of generating units, totaling
approximately 12,000 megawatts of generating capacity, and is a
leading advocate for clean, environmentally sustainable energy
sources, such as solar power and nuclear energy. The company
delivers electricity and natural gas through the Baltimore Gas and
Electric Company (BGE), its regulated utility in Central Maryland.
A FORTUNE 500 company headquartered in Baltimore, Constellation
Energy had revenues of $14.3 billion in 2010.
About Green-E Energy
Green-e Energy was established by the non-profit Center for
Resource Solutions to provide information and an objective standard
for consumers to compare renewable energy options, and to verify
that consumers get what they pay for. For more information on
Green-e Energy certification requirements, call 1-888-63-GREEN or
log on to www.green-e.org.
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