Southern Company Secures $26.5B DOE Loan Guarantee for Grid Investments
Southern Company has received a loan package of up to $26.54 billion from the U.S. Department of Energy’s Office of Energy Dominance Financing (EDF) to support grid reliability and infrastructure projects across the Southeast.
The financing will benefit subsidiaries Georgia Power and Alabama Power, serving a combined 4.3 million customers. Over the approximately 30-year term of the loans, customer savings are estimated at $7 billion.
The loans are part of a federal program designed to support energy infrastructure investment. According to the company, the funding will help finance projects including natural gas generation, nuclear uprates and license extensions, hydropower, battery energy storage, and transmission system upgrades.
Chris Womack, chairman, president and CEO of Southern Company, said the financing would help lower the cost of grid investments while enhancing system reliability and resilience.
The vertically integrated, state-regulated utility model used by Southern Company allows it to work with regulators on long-term infrastructure planning and cost recovery. Financial draws under the EDF loan program are subject to conditions and may be made through September 15, 2033.
The investment represents one of the largest federal energy financing packages announced in recent years and is aimed at strengthening grid infrastructure while supporting projected regional growth.
Source: southerncompany.com
