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 electric grid in the Midwest. The initiative will focus on reconductoring and rebuilding approximately 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The project is expected to create more than 1,000 construction jobs and enhance grid capacity in areas experiencing rapid growth.
The loan guarantee is part of the DOE’s Loan Programs Office (LPO) efforts to support grid modernization. It follows President Trump’s Executive Order on strengthening the reliability and security of the nation’s electric grid.
“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 financial close with AEP marks the first loan guarantee completed 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. The legislation, signed into law by President Trump earlier this year, requires that utilities receiving EDF loans ensure financial benefits from the financing are passed on to their customers.
DOE officials state that the department will continue to use available tools, including the LPO, to support affordable and reliable energy for Americans.
