US Energy Department closes $5.1bn loan package to Alliant Energy
The Department of Energy said the financing will add more than 2.6 gigawatts of new or upgraded generation capacity in Iowa and Wisconsin and is meant to lower electricity costs.
AI illustrationThe U.S. Department of Energy has reached financial close on a $5.1 billion loan package to the utility Alliant Energy, the department announced on Wednesday. The money is intended to lower electricity costs, expand firm power generation and strengthen grid reliability in Iowa and Wisconsin.
According to the department, the investments will add more than 2.6 gigawatts of new or upgraded power generation capacity across the two states and deliver more than $1 billion in electricity cost savings for families and businesses there. The added output is enough to power the equivalent of nearly 2 million homes, the department said.
The funds will support new natural gas-fired power plants, energy storage systems and upgrades to existing generation facilities. The department expects the projects to create hundreds of construction-related jobs.
The loan was arranged by the department's Office of Energy Dominance Financing. The department described it as the Trump administration's tenth financial close, and as the sixth and seventh utility financing completed under the Energy Dominance Financing Program.
The department linked the announcement to President Trump's executive order on strengthening the reliability and security of the United States electric grid, saying the financing helps secure dependable power to meet growing electricity demand.
Secretary of Energy Chris Wright said the investments would drive down energy costs for families and businesses in Iowa and Wisconsin and strengthen the national electric grid. Gregory A. Beard, who heads the financing office, said that bringing new, dependable power online strengthens energy security and lowers electricity costs in both states.
The department said the financing office backs energy and manufacturing projects that contribute to U.S. energy security, grid reliability and lower costs, while managing taxpayer money more responsibly.