Hundreds of miles of Oklahoma transmission lines will soon be upgraded through a loan agreement from the U.S. Department of Energy.
The loan is for $1.6 billion for American Electric Power to upgrade about 5,000 miles of existing transmission lines in five states, including about 1,400 miles in Oklahoma.
American Electric Power is the parent company of Public Service Company of Oklahoma, which serves nearly 600,000 customers across the state. But the upgrades will carry energy to AEP customers across state lines. According to a company press release, the transmission line upgrades in Oklahoma are expected to impact about 1.2 million customers across the company's service area.
"AEP will work with local communities and landowners in siting these critical transmission lines that will power important technology advancements and facilitate economic development for the states and communities AEP serves," according to the press release.
The loan is in accordance with President Donald Trump's executive order to strengthen the U.S. electric grid, according to the department of energy. It's the first closed loan guarantee under the Energy Dominance Financing Program made through the One Big Beautiful Bill Act.
The upgrades will provide better reliability, and officials say the project will bring about 1,100 construction jobs to the states.
"This loan saves our customers money and improves reliability while supporting economic growth in our states," said Bill Fehrman, the CEO of American Electric Power. "The funds we will save through this program enable us to make additional investments to enhance service for our customers."
Fehrman said the company is experiencing generational energy demand. In Oklahoma, transmission line projects have seen pushback even as the need for energy grows.
Company officials say the improvements are mainly to support the development of data centers, artificial intelligence and manufacturing.
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