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

Core Insights - AEP Transmission has secured a $1.6 billion loan guarantee from the U.S. Department of Energy to upgrade nearly 5,000 miles of transmission lines, which is expected to save customers approximately $275 million in financing costs over the loan's life [1][2][4] Financing and Economic Impact - The loan will facilitate the replacement of existing transmission lines with new ones that can carry more energy, enhancing reliability and supporting economic growth by increasing power capacity in the communities served by AEP [2][3] - AEP anticipates the creation of 1,100 construction jobs as a result of these upgrades [2] Energy Demand and Infrastructure - Energy demand is projected to increase significantly, with customers requiring an additional 24 gigawatts of electricity by the end of the decade, primarily driven by data centers, artificial intelligence, and manufacturing [3] - AEP is exploring federal funding opportunities and implementing rate structures to mitigate rate impacts for customers while supporting infrastructure investments [3] Project Details - The initial projects supported by the loan guarantee include approximately 100 miles of transmission lines in Ohio and Oklahoma, with additional projects to follow [5] - AEP's investment plan includes $54 billion from 2025 to 2029 to enhance service and meet growing energy needs [6] Company Overview - AEP operates the largest electric transmission system in the U.S., with 40,000 line miles and over 225,000 miles of distribution lines, serving 5.6 million customers across 11 states [6] - The company is also one of the largest electricity producers in the nation, with around 30,000 megawatts of diverse generating capacity [6]