ATLANTA, Ga. — Georgia Power and Alabama Power secured a historic federal loan package that officials say will modernize plants including Plant Oliver and deliver over $7 billion in electricity cost savings to customers across both states.
The U.S. Department of Energy Office of Energy Dominance Financing closed a $26.5 billion loan package for the two Southern Company subsidiaries. Energy Secretary Chris Wright said the loans will lower energy costs, create thousands of jobs and increase grid reliability in Georgia and Alabama.
The two loans will build or upgrade over 16 gigawatts of firm reliable power. That 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, the loans are estimated to reduce Southern Company interest expenses by over $300 million per year. Plant Oliver was built in 1959 and now needs upgrades including turbine replacements, plant-system upgrades and generator work designed to keep providing energy for customers for another 40 years.
Jacob Hawkins, director of communications for Georgia Power, said the company sought federal funding for work already approved by public service commissions in Georgia and Alabama so low-cost loans could finance improvements and save customers money. He said data centers and other large energy users pay their share for upgrades and transmission they require.
Officials say the loans will save customers more than $7 billion over the next 30 years. Greg Beard of the Department of Energy said government loan savings must be passed on to customers. Officials also said more energy is needed across Georgia as people continue to move to the state and use more power.
