newsfilter
← Latest News
PR Newswire·

AEP Receives U.S. Department of Energy Loan Guarantee to Upgrade 5,000 Miles of Transmission Lines

AEP
  • AEP Transmission secured a $1.6 billion preferred interest rate loan guarantee from the U.S. Department of Energy's Loan Programs Office.
  • The funding will upgrade nearly 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, & West Virginia.
  • Customers are expected to save an estimated $275 million in financing costs over the loan's life, resulting in lower bills.
  • The project involves replacing existing lines with new capacity lines within current rights-of-way to enhance reliability & support economic growth.
  • AEP estimates the construction projects will create 1,100 jobs.
  • Energy demand in AEP's footprint is projected to increase by 24 gigawatts by the end of the decade, driven by data centers, artificial intelligence, & manufacturing.
  • Bill Fehrman, AEP's chairman, president, & CEO, noted this is the first new loan closed under the program with the Trump Administration.
  • Specific projects include Ohio Transco (2,122 miles), I&M Transco (1,410 miles), Oklahoma Transco (1,434 miles), & West Virginia Transco (26 miles).
  • Approximately 100 miles of lines in Ohio & Oklahoma are the initial projects to be supported by the loan guarantee.
  • AEP is investing $54 billion from 2025 through 2029 to support growing energy needs & service enhancements.
  • The company operates the nation's largest electric transmission system with 40,000 line miles & serves 5.6 million customers across 11 states.