PacificCorp, serving six western states, has secured up to $3.52bn for transmission lines enhancements. Credit: Brian Guest/Shutterstock.

The US Energy Department’s Loan Programs Office (LPO) has conditionally offered $22.92bn in financing to eight energy utilities across 12 states.  

The move is part of the Energy Infrastructure Reinvestment (EIR) programme, created by the Inflation Reduction Act to modernise energy systems and reducing emissions. 

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Projects supported by the announcements made include clean generation, transmission, energy storage, gas pipeline investments and grid modernisation.  

By accessing the lowest-cost debt, these utilities will bear lower financing costs for their qualifying infrastructure projects than if they had used commercial capital markets.  

The LPO, which oversees more than $385bn in low-interest loans for green energy projects, has earmarked this as one of the final rounds of financing under President Joe Biden before Donald Trump’s inauguration on 20 January 2025.  

In December 2024, the office announced up to $15bn in conditional loans to California-based utility PG&E, highlighting the programme’s ongoing support for clean energy initiatives, as reported by Reuters. 

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Two subsidiaries of DTE Energy in Detroit, Michigan, are among the recipients, with a potential $8.8bn directed towards pipeline replacements to minimise gas leaks and the installation of renewable energy sources.  

Another Michigan-based utility Consumers Energy Company, under CMS Energy, received a commitment of up to $5.23bn for renewable energy investments and gas pipeline replacements. 

PacificCorp, serving six western states, secured up to $3.52bn for transmission line enhancements, increasing its capacity to deliver wind power to consumers.  

But under the second Trump administration, the future of the LPO and its initiatives is uncertain. 

An Energy Department official stated: “Loans to utility borrowers pose minimal risk to the taxpayer.  

“In the unlikely event of default, LPO could recover what it is owed, up to the loan amount, beyond the sale or acquisition of assets financed through the loan.”