The US Energy Department’s Loan Programs Office has announced nearly $23 billion in loans to energy utilities across 12 states. These loans will be granted through the energy infrastructure reinvestment program, created under President Joe Biden’s climate legislation, the Inflation Reduction Act.
The funding will support projects that retool or replace energy infrastructure that is no longer operating, as well as those that enable reductions in emissions blamed for global warming. This is one of the last rounds of financing under Biden before Donald Trump takes office on January 20th.
DTE Energy Company and Consumers Energy Company, both based in Michigan, are among the recipients of the loans. DTE Energy received up to $8.8 billion for pipeline replacements and renewable energy installations. Consumers Energy got a conditional commitment of up to $5.23 billion for similar investments.
PacificCorp, a utility serving six western states, secured a conditional commitment of up to $3.52 billion for transmission line upgrades. The loans are supported by the assets of the companies, reducing the risk to taxpayers in case of default.
The funding is part of the Inflation Reduction Act’s energy infrastructure reinvestment program, which guarantees loans to projects with green energy initiatives such as batteries, nuclear power, and advanced vehicles.
Source: https://www.reuters.com/business/energy/us-announces-nearly-23-billion-loans-energy-utilities-across-12-states-2025-01-16