Washington, DC—SAFE applauds the Department of Energy’s Loan Programs Office (LPO) for its $1.6 billion loan guarantee to support American Electric Power’s (AEP) transmission upgrades. This commitment supports the financing of reconductoring and rebuilding almost 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia, capable of carrying greater load and delivering it safely and efficiently to customers.
The upgraded transmission infrastructure and capacity made possible by this project will benefit nearly 4 million customers, including defense-critical manufacturers and data centers, and enable AEP to meet its forecasted 24-gigawatt increase in electricity demand over the next five years. Through this loan guarantee, LPO enables AEP to reduce financing costs and pass along an estimated $275 million in savings to its customers.
“For too long, we’ve underinvested in the transmission infrastructure needed to support a modern, reliable, and competitive energy system,” said SAFE’s Center for Grid Security Executive Director Danielle Russo. “LPO’s loan guarantee marks a pivotal step toward reversing that trend. Actions like this—backed by federal support—are essential not only to modernize the grid and expand transmission capacity, but also to position the United States to lead in artificial intelligence and reenergize our domestic manufacturing base.”
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About SAFE
SAFE is an action-oriented, nonpartisan organization committed to transportation, energy, and supply chain policies that advance the economic and national security of the United States, its partners, and allies. Since 2004, SAFE has worked with its Energy Security Leadership Council—a peerless coalition of current and former Fortune 500 CEOs and retired 4-star admirals and generals—to support secure, resilient, and responsible energy solutions. Learn more at SecureEnergy.org.
