The Department of Energy’s Office of Energy Dominance Financing, formerly the Loan Programs Office, has awarded a $26.5 billion loan to Southern Company to invest in its energy infrastructure.
Southern Company said in its Wednesday press release that the term is nearly 30 years of loans and will be split among two utility subsidiaries, Georgia Power and Alabama Power. Southern estimates that loans will deliver $7 billion in savings for its customers in Alabama and Georgia.
Through the Office of Energy Dominance Financing loans, the Alabama and Georgia subsidiaries will build or upgrade over 16 gigawatts of firm reliable power to the electrical grid. These energy infrastructure investments include 6 gigawatts or 6,000 megawatts in nuclear improvements through upgrades and license renewals, according to DOE’s press release.
Southern Company is an Atlanta based utility holding company.
Alabama Power operates the 1,800 megawatt-dual-unit, Joseph Farley Nuclear Plant, based in Columbia, Ala. Georgia Power operates the 4,664-megawatt-four-unit Alvin Vogtle Electric Generating Plant based in Waynesboro, Ga. and 1,848-megawatt-dual-unit Edwin Hatch Nuclear Plant based in Baxley, Ga.
Other improvements are expected to include 5 gigawatts of new gas generation, hydropower modernization, battery energy storage systems and over 1,300 miles of transmission and grid enhancement projects, DOE added.
“These investments will support the extraordinary and transformative projected growth we’re seeing across our company,” Southern Company President and CEO Chris Womack said. “These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers. We believe the actions we’re taking today will leave an enduring, positive impact on generations to come.”
DOE said these loans represent the largest government investment aimed directly at lowering customer energy costs and strengthening grid reliability.