WASHINGTON (dpa-AFX) - AEP Transmission, a division of American Electric Power, has secured a $1.6 billion loan guarantee from the U.S. Department of Energy to upgrade almost 5,000 miles of transmission lines in five states: Indiana, Michigan, Ohio, Oklahoma, and West Virginia.
In light of the growing demand for electricity from data centers and artificial intelligence infrastructure, the initiative seeks to increase grid capacity and reliability.
With 5.6 million customers in 11 states, American Electric Power is one of the biggest utilities in the country. Its main energy sources are coal, natural gas, and nuclear power, with a small amount coming from renewable sources.
The project will guarantee 'affordable, reliable, and secure energy for decades,' according to Energy Secretary Chris Wright, who emphasized the administration's emphasis on increasing conventional energy production and modernizing the grid.
The loan is the first of its kind authorized by the Trump administration and is made available through the new Energy Dominance Financing program.
In light of the recent cancellation of $7.6 billion in renewable energy grants across 16 states, Wright characterized it as an attempt to undo the clean energy agenda of the previous administration.
There will be a smaller portion in West Virginia, but more than 2,000 miles of lines will be replaced in Ohio, 1,400 miles in Indiana and Michigan, and another 1,400 miles in Oklahoma.
An estimated 1,100 construction jobs will be created by the project. According to AEP CEO Bill Fehrman, the improvements will boost regional economic growth, lower costs, and increase reliability.
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