Energy Department Grants Historic Loan, Saving Georgia and Alabama $7 Billion in Electricity
The U.S. Department of Energy has announced a significant loan initiative aimed at reducing electricity costs by over $7 billion for millions of customers in Georgia and Alabama. The $26.5 billion loan package, facilitated by the Office of Energy Dominance Financing, marks a historic investment in the energy sector.
Details of the Historic Loan Package
This unprecedented funding will support two subsidiaries of Southern Company, as part of an initiative inspired by President Trump’s Executive Order focused on enhancing American energy independence. The loan is structured under the Working Families Tax Cut, which aims to lower energy prices, create jobs, and bolster grid reliability.
Key Benefits of the Loan Package
- Estimated electricity cost savings exceeding $7 billion for customers in Georgia and Alabama.
- Creation of thousands of jobs in the energy sector.
- Enhancement of grid reliability across both states.
Investment in Energy Infrastructure
The loan package will advance the construction and upgrades of over 16 gigawatts (GW) of reliable power. This includes:
- 5 GW of new gas generation capacity.
- 6 GW of nuclear power improvements through uprates and license renewals.
- Modernization of hydropower facilities.
- Development of battery energy storage systems.
- Over 1,300 miles of transmission and grid enhancements.
Financial Impact
Once the funding is fully disbursed, it is anticipated that the loans will reduce Southern Company’s interest obligations by more than $300 million annually. This reduction will help facilitate lower electricity rates for consumers.
Commitment to American Energy Dominance
Southern Company is positioned as a pioneer among utilities collaborating with the Department of Energy and the Trump administration to revitalize American energy capabilities through strategic investments. In 2025, the company plans to implement multi-year rate freezes, further ensuring cost stability for their customers.
The Department of Energy remains dedicated to redefining government energy financing, ensuring access to affordable, reliable, and secure energy for all Americans.
