The U.S. Department of Energy (DOE) has finalized a $1.6 billion loan guarantee to a subsidiary of American Electric Power (AEP) to upgrade and rebuild approximately 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The project aims to improve grid reliability and lower electricity costs in the Midwest.
This action follows President Trump’s Executive Order on strengthening the reliability and security of the U.S. electric grid. The DOE stated that the initiative will create more than 1,000 construction jobs and increase grid capacity in areas experiencing rapid growth.
U.S. Secretary of Energy Chris Wright said, “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. 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 is the first to be closed under the Energy Dominance Financing (EDF) Program, which was established by the Working Families Tax Cut—also known as the One Big Beautiful Bill Act—signed into law by President Trump earlier this year. Utilities that receive EDF loans are required to ensure that financial benefits from the financing are passed on to their customers.
DOE officials emphasized their ongoing commitment to using all available tools, including the Loan Programs Office, to provide affordable, reliable, and secure energy.
