Wish Granted

DOE announces billion-plus loan to American Electric Power

AEP Transmission, a Columbus, Ohio-based subsidiary of American Electric Power, has reportedly closed on a $1.6 billion loan guarantee at a preferred interest rate from the U.S. Department of Energy’s Loan Programs Office (LPO) to upgrade nearly 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia.

According to a corresponding press release, the agreement could save an estimated $275 million in financing costs over the life of the loan, benefits that customers will realize through lower costs in their bills.

"The upgrades supported by this financing will replace existing transmission lines in existing rights-of-way with new lines capable of carrying more energy," AEP stated in the press release. "The upgrades will provide enhanced reliability for customers and facilitate new economic growth opportunities by bringing additional power capacity to the communities AEP serves. AEP estimates that 1,100 construction jobs will be created through these projects."