The United States Department of Energy on Wednesday finalized a $26.5 billion loan package that officials said will deliver more than $7 billion in electricity cost savings to customers in Alabama and Georgia.
United States Secretary of Energy Chris Wright said the financing, issued through the Department of Energy’s Office of Energy Dominance Financing, will support major power generation and grid investments by two wholly owned subsidiaries of Southern Company, the parent company of Alabama Power and Georgia Power.
The Department of Energy said the loans align with President Donald Trump’s executive order, “Unleashing American Energy,” and are funded under what the administration calls the Working Families Tax Cut initiative.
“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.
The financing will support the construction or upgrade of more than 16 gigawatts of firm power generation capacity. Federal officials said the projects include about 5 gigawatts of new natural gas generation, 6 gigawatts of nuclear capacity improvements through uprates and license renewals, modernization of hydropower facilities, battery energy storage development and more than 1,300 miles of transmission and grid enhancement projects.
Wright said the initiative reverses prior federal energy policies.
“The President has been clear: America must reverse the energy subtraction agenda of past administrations and add more reliable power generation to our electrical grid,” Wright said. “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.”
Department of Energy officials estimate the financing will reduce Southern Company’s annual interest expenses by more than $300 million once fully implemented. Officials said those savings could help accelerate lower electricity costs for customers.
Southern Company previously announced plans to implement multiyear rate freezes beginning in 2025. Federal officials cited that move as evidence the financing could translate into consumer savings.
The Department of Energy described the loan package as the largest federal investment specifically aimed at reducing consumer electricity costs while strengthening long-term grid reliability. The agency said the program represents a new model for federal energy financing focused on affordability, infrastructure resilience and expanding domestic power generation.
