US Awards $1.6 Billion in Financing for AEP Transmission Project
(Bloomberg) -- The Trump administration has finalized $1.6 billion in financing for an American Electric Power Co. subsidiary to upgrade 5,000 miles of utility transmission lines across five states.
The loan guarantee is the Energy Department’s first under President Donald Trump, and will be used to replace and rebuild transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia, the agency said on Thursday. It added that the work would enhance grid reliability and capacity in rapidly growing areas.
The approval follows a review of the Energy Department’s $400 billion-strong Loan Programs Office, which has come under fire from Energy Secretary Chris Wright for issuing billions of dollars in the time between Trump’s election victory and his taking office.
The financing for Columbus, Ohio-based AEP is part of a tranche of nearly $23 billion in conditional loan guarantees to seven utilities initiated by the previous administration, just days before President Joe Biden left office.
While Trump had considered canceling the loan program during his first term, the Energy Department has said it intends to use it to finance coal projects, advanced nuclear reactors, and other priorities.
“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,” Wright said in a statement. He added the financing is in line with the Trump administration’s goal of “unleashing energy dominance” while being a responsible steward of taxpayer money.
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