US Department of Energy (DOE) approves massive $26.5 billion loan to Southern Company

saving $300 million in interest expense?!?!!!

From here:

DOE loans Southern $26.5B for 5 GW of new gas, other grid investments | Utility Dive

“Calling it the largest loan in the agency’s history, DOE said it aims to deliver over $7 billion in cost savings for Georgia Power and Alabama Power customers.”

“Officials say it will deliver over $7 billion in cost savings for customers of Southern subsidiaries Georgia Power and Alabama Power.

From Brave AI:

“Southern Company serves 9 million customers across six states through its electric and natural gas subsidiaries.

• Electric utilities serve customers in Georgia, Alabama, and Mississippi.

• Natural gas distribution companies serve customers in Illinois, Tennessee, Virginia, and Georgia (shared with electric service).”

“Dive Insight:

DOE said the loans will support new gas generation as well as 6.3 GW of nuclear through upgrades and license renewals, 1 GW of hydropower modernization, battery energy storage systems and over 1,300 miles of transmission distribution system projects.

A fact sheet DOE provided specifies the loans will result in 5.3 GW of new gas generation and nearly 500 MW in gas capacity upgrades. The additions include three new natural gas turbines totaling 1.3 GW at the Yates Power Plant in Georgia, set to be online by the end of 2027. Southern will add additional generation at three other plants by the end of 2030, DOE said.

“According to a DOE statement, the loans represent “the largest government investment aimed at directly lowering consumer energy costs and increasing grid reliability.” The agency said the loans are estimated to reduce Southern’s interest expenses by over $300 million annually, “helping expedite lower electricity costs for customers.”

Brave AI’s take on Southern’s catering for data centres:

“Southern Company has contracted 10 gigawatts (GW) of power for data center customers across Alabama, Georgia, and Mississippi, with executives indicating that 75 gigawatts of additional data center demand have expressed interest in connecting to its grid.

• 10 GW is currently under contract, including major clients like Google, Meta, Microsoft, and Compass Datacenters.

• The 75 GW pipeline represents potential demand equivalent to powering over 50 million homes.

• This surge in demand is driving Southern Company to raise its five-year capital spending plan to $81 billion (2026–2030), with about half allocated to expanding power generation.

• To meet this demand, the company is extending the life of three coal plants (Plant Daniel, Bowen, and Scherer), pursuing up to 1,700 MW of new natural gas capacity, and exploring battery storage and grid upgrades.

Is this a thinly disguised subsidization for data centers from households utility bills and federal taxpayers? Households could be paying for this through their utility bills and taxpayers through taxes!

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