The U.S. Department of Energy has made conditional loan commitments totaling $22.9 billion to utilities for transmission, pipeline and clean power investments.
An estimated 14.8 million customers in 12 states stand to benefit from the lower-cost debt issued through DOE’s Loan Programs Office.
The LPO said Jan. 16 that the projects planned will add much-needed transmission capacity; provide new wind, solar and hydropower generation on the gigawatt scale; and replace more than 3,000 miles of leaky gas mains and distribution lines that pose a threat to public safety and to the climate.
LPO listed the following details about the guarantees:
AEP — $1.6 billion to benefit 3.8 million customers in Indiana, Michigan, Ohio, Oklahoma and West Virginia by reconductoring or rebuilding almost 5,000 miles of transmission lines, increasing transmission capacity by 70% and creating a more reliable and efficient system better able to meet growing energy demands.
Consumers Energy — $5.23 billion to benefit 3.1 million customers in Michigan through the CE Clean Energy project, a wide-ranging plan that includes more than 1.8 GW of new solar and wind capacity; battery storage; virtual power plants; and replacement of legacy gas pipelines.
DTE Electric — $7.17 billion to benefit 2.3 million customers in Michigan by building thousands of megawatts of generation and battery storage capacity that will be cleaner than existing generation.
DTE Gas — $1.64 billion to benefit 1.3 million customers in Michigan by updating older gas mains and lines and moving metering infrastructure outdoors.
Interstate Power and Light — $1.43 billion to benefit 500,000 customers in Iowa; parent company Alliant Energy retired a major coal-fired facility in Iowa in 2023 and plans to add approximately 2 GW of wind power and battery storage capacity in Iowa and Wisconsin.
Jersey Central Power & Light — $716 million to benefit 1.2 million customers through the New Jersey Clean Energy Corridor, a package of substation expansions and 40 miles of transmission upgrades that will increase capacity by nearly 4.9 GW and 20 MMWh.
PacifiCorp — $3.52 billion to benefit 2.1 million customers in California, Idaho, Oregon and Utah through Project WIRE, which is intended to augment system capacity and reduce curtailment of existing wind plants by building and reconductoring transmission lines to support existing and future power generation.
Wisconsin Power and Light — $1.62 billion to benefit 500,000 customers in Wisconsin; parent company Alliant Energy plans to stop burning coal at a Wisconsin plant before 2030 and plans to add approximately 2 GW of wind power and battery storage capacity in Wisconsin and Iowa.
The conditional loan commitments announced Jan. 16 are through the LPO’s Title 17 Energy Infrastructure Reinvestment Program, created by the Inflation Reduction Act of 2022.
DOE and the recipients must satisfy technical, legal, environmental and financial conditions before DOE finalizes and funds the loan guarantees.
AEP said in a news release that it expects to close on the loan this quarter.
President Bill Fehrman said: “AEP is investing $54 billion in transmission, distribution and generation projects over the next 5 years. Funds from this program will support these investments and save our customers money while we work to improve reliability and bring economic growth to our states. The funds we are able to save through this program enable us to make additional investments to enhance service for our customers.”
