The U.S. Department of Energy offered a record $26.54 billion loan to Southern Company subsidiaries Georgia Power and Alabama Power. This financing supports projects to add or upgrade more than 16 gigawatts of power capacity.
The plan includes 5 gigawatts of new natural gas generation and upgrades to existing nuclear and hydropower facilities. It also funds battery storage systems and the enhancement of over 1,300 miles of transmission lines. Federal officials estimate the investment could save customers more than $7 billion.
Southern Company cited lower-cost financing as a primary benefit for grid modernization. However, consumer advocates warned of potential rate impacts. Environmental groups criticized the proposal for including new natural gas generation.