WASHINGTON—U.S. Secretary of Energy Chris Wright today announced the Department of Energy’s (DOE) Loan Programs Office (LPO) closed a loan guarantee to strengthen grid reliability and ensure lower electricity costs across the midwestern region of the United States.
In accordance with President Trump’s Executive Order, Strengthening the Reliability and Security of the United States Electric Grid, the $1.6 billion loan guarantee to a subsidiary of American Electric Power (AEP) will reconductor and rebuild around 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The project will create over 1,000 construction jobs and enhance grid reliability and capacity in rapidly growing areas.
“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, which was carefully evaluated under the new LPO guidance directed by Secretary Wright, delivers on the Trump administration’s promise to responsibly steward taxpayer dollars and unleash American energy dominance.
The AEP financial close is also the first closed loan guarantee under the Energy Dominance Financing (EDF) Program created by the Working Families Tax Cut, also known as the One Big Beautiful Bill Act. President Trump signed the legislation into law earlier this year. All electric utilities receiving an EDF loan must provide assurance to DOE that financial benefits from the financing will be passed on to the customers of that utility.
DOE remains committed to using all tools at its disposal, including the LPO, to deliver affordable, reliable and secure energy for the American people.
###
