The Department of Energy says it has closed what it calls the largest loan package in its history, approving $26.5 billion in financing for subsidiaries of Southern Co. that is projected to deliver more than $7 billion in electricity cost savings to customers in Georgia and Alabama.
Energy Secretary Chris Wright announced the package Tuesday, saying the loans were issued through the department's Office of Energy Dominance Financing in line with President Donald Trump's executive order "Unleashing American Energy," which calls for expanding reliable and affordable domestic power generation.
"Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable, and secure energy for decades to come," Wright said.
He added that the loans are intended to "add more reliable power generation to our electrical grid" while creating thousands of jobs.
According to the Energy Department, the financing will support projects by Georgia Power and Alabama Power, including more than 16 gigawatts of firm power capacity.
The portfolio includes 5 gigawatts of new natural gas generation, 6 gigawatts in nuclear uprates and license renewals, hydropower modernization, battery storage systems, and more than 1,300 miles of transmission and grid enhancements.
The department estimates that once fully drawn, the loans could reduce Southern Co.'s interest expenses by more than $300 million per year, which could help lower electricity costs.
Southern verified that the loans, which may be drawn through September 2033, are expected to generate about $7 billion in savings for customers over roughly 30 years.
"These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers," said Chris Womack, the company's chairman, president, and CEO. He said the company is focused on maintaining rate stability and delivering long-term savings.
The company said the investments will serve its combined 4.3 million customers in Alabama and Georgia and support what it described as significant projected growth across its service area.
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