AEP Texas Secures $3.26B DOE Loan
The United States Department of Energy (DOE) and American Electric Power (AEP) Co's subsidiary in Texas have reached financial close for a loan of up to $3.26 billion from the Trump administration's Energy Dominance Financing (EDF) Program.
"In accordance with President Trump’s Executive Order, Unleashing American Energy, the loan will finance approximately 100 transmission projects across Texas, including rebuilding or reconductoring existing transmission lines, and constructing new transmission infrastructure spanning roughly 2,800 miles", DOE said in a statement.
"These projects will double the power-carrying capacity of upgraded transmission infrastructure, reduce power interruptions, and connect new sources of reliable baseload generation to the grid.
"By expanding transmission capacity, the projects will help meet rapidly growing electricity demand from data centers, advanced manufacturing, and oil and natural gas development in the Permian Basin.
"This loan marks the Trump Administration’s third concurrent conditional commitment and financial close, and the third utility financing completed through the Energy Dominance Financing Program".
DOE and AEP claimed the loan will help unlock $685 million electricity cost savings over the next 30 years for more than one million households and businesses in the state.
AEP said separately its Texas arm has signed letters of agreement supporting up to 41 gigawatts of potential load additions through 2030.
"This loan is part of AEP’s broader strategy across its 11-state service territory to secure federal funding to reduce customer costs while supporting growth and investing in reliability and resiliency", AEP said.
The new loan is on top of a $1.6-billion loan guarantee that AEP earlier secured from the EDF Program. The guarantee will help "upgrade nearly 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia while saving customers an estimated $275 million in financing costs over the life of the loan, benefits that customers will realize through lower costs in their bills", AEP said October 16, 2025.
Earlier in 2026 Southern Co's Alabama Power and Georgia Power secured a total of up to $26.54 billion in EDF loans.
"These loans represent the largest government investment aimed at directly lowering consumer energy costs and increasing grid reliability", DOE said February 25.
The 30-year loans - around $22.42 billion for Georgia and around $4.09 billion for Alabama - could result in $7 billion in savings for 4.3 million customers, according to Southern.
"The two loans will build or upgrade over 16 gigawatts (GW) of firm reliable power to the electrical grid", DOE said. "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".
"Once all funds are received through the program, the loans are estimated to reduce Southern Co's interest expenses by over $300 million per year, helping expedite lower electricity costs for customers", DOE said.
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