The U.S. Department of Energy (DOE) has finalized a $1.6 billion loan guarantee to a subsidiary of American Electric Power (AEP) to upgrade and rebuild approximately 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The initiative aims to improve grid reliability and reduce electricity costs in the Midwest.
The loan guarantee, issued through the DOE’s Loan Programs Office (LPO), is part of an effort to comply with President Trump’s Executive Order focused on strengthening the reliability and security of the U.S. electric grid. The project is expected to create more than 1,000 construction jobs and increase grid capacity in areas experiencing rapid growth.
“Thanks to President Trump and the Working Families Tax Cut, the Energy Department is ensuring the American people will have access to affordable, reliable and secure energy for decades to come,” said U.S. Secretary Wright. “The President has been clear: America must reverse course from the energy subtraction agenda of past administrations and strengthen our electrical grid. This loan guarantee will not only help modernize the grid and expand transmission capacity but will help position the United States to win the AI race and grow our manufacturing base.”
The loan guarantee was reviewed under new LPO guidance set by Secretary Wright. It is also the first loan guarantee to close under the Energy Dominance Financing (EDF) Program, which was established by the Working Families Tax Cut, also known as the One Big Beautiful Bill Act. The legislation was signed into law by President Trump earlier this year. Utilities that receive EDF loans are required to ensure that financial benefits from the funding are passed on to their customers.
DOE stated its ongoing commitment to using available tools, including loan programs, to provide affordable, reliable, and secure energy to Americans.
