US Energy Department offers record loan to Southern Co
The US Energy Department offered a record 26.5 billion dollar loan to Southern Co for grid upgrades. The funds aim to lower costs and boost power reliability.
The United States[Country:{\"assets\":{\"country\":\"US\"}}] Department of Energy has offered a $26.54 billion loan to subsidiaries of The Southern Company[Symbol:{\"assets\":{\"symbol\":\"SO\"}}] to increase grid reliability, marking the largest financing ever provided by its loan office. The department stated on Wednesday that these loans will save power customers in Georgia and Alabama more than $7 billion, following a commitment by Southern last year to freeze power bill increases for several years.
The two roughly 30-year loans, designated for Georgia Power and Alabama Power, will facilitate the construction or upgrade of more than 16 gigawatts of power capacity. This includes 5 gigawatts of new natural gas generation, the expansion of existing nuclear plants, and the modernization of hydropower facilities. Furthermore, the funding will support the development of battery energy storage systems and over 1,300 miles of transmission and grid enhancement projects.
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, said U.S. Energy Secretary Chris Wright.
Chris Womack, the chairman, president, and CEO of Southern Company, emphasized that the financing would improve the affordability of critical infrastructure upgrades.
The loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers, Womack noted.
Southern Company indicated that draws from the loans are subject to the satisfaction of specific conditions and may be executed through September 15, 2033.
