The U.S. Department of Energy (DOE) has finalized a $1.6 billion loan guarantee to a subsidiary of American Electric Power (AEP) aimed at improving the reliability of the electrical grid in the Midwest. The project, announced by Secretary of Energy Chris Wright, will involve the reconstruction and reconductoring of about 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia.
This initiative is part of an executive order from President Trump focused on strengthening the reliability and security of the U.S. electric grid. The project is expected to create over 1,000 construction jobs and boost the grid’s capacity in areas experiencing rapid growth.
“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 DOE stated that this is the first loan guarantee closed under the Energy Dominance Financing (EDF) Program, established by the Working Families Tax Cut, also known as the One Big Beautiful Bill Act. The legislation, signed into law earlier this year, requires utilities that receive EDF loans to ensure that financial benefits from the financing are passed on to their customers.
The DOE said it remains committed to using available resources, including the Loan Programs Office, to provide affordable, reliable, and secure energy nationwide.
