Energy Department Announces $26.5B Loan for Electricity Cost Savings

DOE Loan Programs Office

Published February 25th, 2026

Detected March 14th, 2026

Summary

The Department of Energy announced a $26.5 billion loan package, the largest in its history, to Southern Company subsidiaries. This initiative is projected to save customers in Georgia and Alabama over $7 billion in electricity costs and enhance grid reliability.

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What changed

The Department of Energy (DOE) has closed a historic $26.5 billion loan package to two subsidiaries of Southern Company, aimed at reducing electricity costs for millions of customers in Georgia and Alabama by over $7 billion. This funding, part of an initiative aligned with an Executive Order on energy, will support the construction or upgrade of over 16 gigawatts of power generation, including new gas facilities, nuclear improvements, hydropower modernization, battery storage, and transmission projects. The loans are expected to lower Southern Company's interest expenses by over $300 million annually, directly contributing to lower consumer energy costs and increased grid reliability.

While this announcement details a significant financial investment and projected cost savings, it does not impose new direct compliance obligations on regulated entities beyond those already undertaken by Southern Company. However, the scale of the investment and its stated goals of increasing grid reliability and lowering consumer costs signal a continued focus by the DOE on large-scale energy infrastructure projects. Companies in the energy sector, particularly those involved in generation, transmission, and storage, should be aware of the DOE's financing capabilities and strategic priorities, as this may influence future project development and investment opportunities.

What to do next

Review DOE financing programs for potential infrastructure investments.
Monitor energy market trends related to grid reliability and cost reduction initiatives.

Source document (simplified)

Energy Department Announces Largest Loan in Department History, Delivering Over $7 Billion in Electricity Cost Savings for Georgia and Alabama Customers

U.S. Secretary of Energy Chris Wright today announced the Department of Energy’s Office of Energy Dominance Financing (EDF) has closed a historic $26.5 billion loan package to deliver over $7 billion in electricity cost savings to millions of customers in Georgia and Alabama.

Energy.gov

February 25, 2026

WASHINGTON— U.S. Secretary of Energy Chris Wright today announced the Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) has closed a historic $26.5 billion loan package to deliver over $7 billion in electricity cost savings to millions of customers in Georgia and Alabama.

In accordance with President Trump’s Executive Order, Unleashing American Energy, this unprecedented loan package will support two wholly owned subsidiaries of Southern Company. Funded under President Trump’s Working Families Tax Cut, the investment will lower American energy costs, create thousands of jobs, and increase grid reliability in Georgia and Alabama.

“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,” said Secretary Wright. “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. 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.”

The two loans will build or upgrade over 16 gigawatts (GW) of firm reliable power to the electrical grid. This includes 5 GW of new gas generation, 6 GW in nuclear improved through uprates and license renewals, hydropower modernization, battery energy storage systems and over 1,300 miles of transmission and grid enhancement projects.

These loans represent the largest government investment aimed at directly lowering consumer energy costs and increasing grid reliability. Once all funds are received through the program, the loans are estimated to reduce Southern Company’s interest expenses by over $300 million per year, helping expedite lower electricity costs for customers.

Southern Company is among the first utilities working with the DOE and the Trump Administration to restore American energy dominance through common-sense energy investments. In 2025, Southern Company announced their plans to enact multiyear rate freezes.

DOE remains committed to setting a new standard for government energy financing, ensuring that loans deliver affordable, reliable, and secure energy for the American people.

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Tags:
- Natural Gas
- Nuclear
- Hydropower
- Transmission