DOE Loan Guarantee to Ease Infrastructure Costs for Appalachian Power Customers

Appalachian Power announced that its customers will benefit from a financing initiative backed by the U.S. Department of Energy’s Loan Programs Office (LPO). The federal loan guarantee will help reduce financing costs for transmission line projects serving approximately 460,000 customers in West Virginia.

The projects are part of a broader initiative by American Electric Power (AEP), Appalachian Power’s parent company, to secure $1.6 billion in loans to rebuild or replace nearly 5,000 miles of transmission lines across five states.

“The upgrades will provide enhanced reliability for customers and facilitate new economic growth in our communities by bringing additional power capacity to these regions,” said Aaron Walker, Appalachian Power president and chief operating officer. “This investment will result in a more reliable electric grid for the communities Appalachian Power serves, ensuring power is there for customers when they need it.”

The transmission-line upgrades are designed to use existing easements and rights-of-way where possible. Appalachian Power stated it will work with local communities and landowners during the siting process for new infrastructure.

Appalachian Power noted that these projects were previously identified as necessary to support the growth of data centers and artificial intelligence development. The company described this as a “generational opportunity” for the states and communities it serves. Appalachian Power also stated it is pursuing low-cost federal funding options and implementing rate structures for new large-load customers to help reduce rate impacts for existing customers.