Feds Provide Record $27B Loans for Utility Expansion in Georgia and Alabama

The loans will help Georgia Power and Alabama Power build new natural gas plants and upgrade existing infrastructure.

Published on Feb. 25, 2026

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The U.S. Department of Energy announced a record $27 billion in federal loans to Georgia Power and Alabama Power, subsidiaries of Southern Company, to expand electricity supply. The loans will help the utilities build new natural gas-fired power plants, construct new transmission lines, and upgrade existing power plants. Energy Secretary Chris Wright said the loans will save customers over $7 billion through lower, federally subsidized interest rates.

Why it matters

The loans come amid scrutiny over rising utility bills, with electricity prices increasing faster than inflation in many states. There is also growing opposition to new data centers for artificial intelligence, which require significant amounts of electricity. The federal government is aiming to ensure affordable and reliable energy access for customers in the region.

The details

The $22.4 billion loan to Georgia Power and $4.1 billion loan to Alabama Power will be used to build new natural gas plants, construct new transmission lines, and upgrade existing power plants. Energy Secretary Chris Wright said the loans will result in over $7 billion in savings for customers due to the lower, federally subsidized interest rates. The loans are part of the federal government's efforts to drive down energy costs and ensure grid reliability.

  • The loans were announced on February 25, 2026.

The players

Chris Wright

U.S. Energy Secretary who announced the record $27 billion in federal loans to Georgia Power and Alabama Power.

Georgia Power

A subsidiary of Southern Company that will receive a $22.4 billion loan to expand electricity supply.

Alabama Power

A subsidiary of Southern Company that will receive a $4.1 billion loan to expand electricity supply.

Southern Company

One of the nation's largest utilities, which owns Georgia Power and Alabama Power.

Chris Womack

Chairman, president and CEO of Southern Company.

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What they’re saying

“We're focused on driving down costs. These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers.”

— Chris Wright, U.S. Energy Secretary (sfgate.com)

“As a taxpayer, it's hard to avoid the fact that this is a bailout paid for by every taxpaying citizen of the United States.”

— Jennifer Whitfield, Attorney, Southern Environmental Law Center (sfgate.com)

“It's locking us into a costlier option. And so I think it just is not meeting the moment of affordability.”

— Peter Hubbard, Georgia Public Service Commissioner (sfgate.com)

What’s next

The loans will need to be approved by the elected Public Service Commissions in Alabama and Georgia, which will review the projected customer savings.

The takeaway

The record federal loans aim to ensure affordable and reliable electricity access in Georgia and Alabama, but critics argue the investments in natural gas infrastructure may not be the most cost-effective option in the long run as renewable energy and storage technologies continue to improve.