The US Department of Energy has issued a historic $26.5 billion loan package to the subsidiaries of Southern Company serving Georgia and Alabama, representing the largest loan in the department’s history and aimed at lowering electricity costs for millions of customers.
The financing is expected to deliver over $7 billion in savings by reducing utility interest expenses and supporting more than 16 GW of new or upgraded reliable power generation, including natural gas, nuclear license renewals, hydropower upgrades, and grid enhancements.
Projects backed by the loans are designed to expand generation capacity, modernize transmission, and create or sustain thousands of jobs, helping improve reliability and affordability for ratepayers across both states. The DOE writes:
THE ENERGY DEPARTMENT IS SAVING GEORGIANS AND ALABAMANS OVER $7 BILLION IN ELECTRICITY COSTS
- On day one, President Trump declared an energy emergency after the energy subtraction policies of the Biden administration drove up electricity prices by nearly 30 percent – 13 times faster than the previous seven years.
- Without a dramatic reversal in energy policy, the U.S. energy grid was on a dangerous path. Blackouts were projected to increase by 100 times in 2030.
- Thanks to President Trump’s leadership, the Energy Department is reversing course and lowering electricity costs for American families by adding reliable power generation.
- On February 25, 2026, the Energy Department’s Office of Energy Dominance Financing (EDF) announced it had issued two loans delivering over $7 billion in electricity cost savings for Georgians and Alabamans.
- Made possible by President Trump’s Working Families’ Tax Cuts, the $26.5 billion loan package will be provided to two wholly owned subsidiaries of Southern Company and represent the largest loan package ever issued by the Energy Department.
- Real and immediate electricity savings will be provided to Georgia and Alabama ratepayers. Multilayer rate freezes are already approved and in effect in Georgia and Alabama.
- The loans are estimated to reduce Southern Company’s interest expenses by over $300 million per year, allowing for greater savings to American families and businesses.
OVER 16 GIGAWATTS OF RELIABLE POWER GENERATION WILL BE ADDED OR UPGRADED TO THE GRID
- These loans will support over 200 individual energy projects in Georgia and Alabama. Through these projects,16.7 gigawatts (GW) of reliable power will be added or upgraded – enough power to support approximately 15million homes.
- These projects will:
- Provide $7.3 billion in estimated customer savings for millions of households and businesses.
- Provide 5.3 GW of new gas generation and nearly 500 megawatts (MW) in gas capacity upgrades,including three new natural gas turbines, totaling 1.3 GW at the natural gas-fueled Yates Power Plant, setto be online by the end of 2027. Bowen Power Plant, McIntosh Power Plant, and Wansley Power Plant,will also add generation set to be online by the end of 2030.
- Provide 6.3 GW in nuclear license renewals and capacity upgrades.
- Provide 1 GW in hydropower modernization and grid enhancement projects.
- Support approximately 1,300 miles of transmission and grid enhancement projects.
- Create and sustain thousands of jobs.
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