Largest loan in department history
The U.S. Department of Energy has offered $26.54 billion in financing to subsidiaries of Southern Company to strengthen electric grid reliability in the Southeast. The package represents the largest loan commitment ever issued by the department’s loan programs office.
The funding will go to Georgia Power and Alabama Power through two loans with terms of roughly 30 years. Officials said the investment is expected to save customers in both states more than $7 billion, though detailed projections were not disclosed.
Expanding generation and transmission capacity
The loans are designed to support construction and upgrades totaling more than 16 gigawatts of power capacity across the grid. That includes 5 gigawatts of new natural gas generation.
In addition, funding will help expand existing nuclear facilities, modernize hydropower plants, deploy battery energy storage systems and improve more than 1,300 miles of transmission infrastructure. The upgrades aim to increase grid resilience, meet rising electricity demand and improve system reliability.
Officials cite reliability and job creation
Energy Secretary Chris Wright said the financing would help lower costs for customers while strengthening regional energy security.
“These loans will not only lower energy costs but also create thousands of jobs and increase grid reliability for the people of Georgia and Alabama,” Wright said in a statement.
Southern Company Chairman and CEO Chris Womack said the support would reduce the cost of capital investments needed to enhance grid resilience and reliability for customers.
Conditions and timeline
Southern Company noted that disbursements are contingent upon meeting specified conditions and may be drawn through September 15, 2033.
Last year, Southern announced plans to pause power bill increases for several years. The company indicated that long-term financing support could help manage future infrastructure costs as electricity demand continues to rise.
