The U.S. Department of Energy announced Wednesday that Alliant Energy will receive a $5.1 billion federal loan, including $1.6 billion earmarked for Wisconsin Power and Light, the state’s third‑largest electric utility. The loan is a direct fulfillment of President Trump’s promise to lower electricity costs and unleash the full potential of American energy.
Local projects slated for approval
Alliant spokesperson Cindy Tomlinson told Wisconsin Watch the funds could support a natural‑gas storage facility in Rock County, as well as two battery storage sites—one in southwestern Wisconsin and another near Sheboygan. All three projects still require approval from the Wisconsin Public Service Commission, but the loan language gives the utility flexibility to direct money toward “energy infrastructure and related projects that increase energy supply or enhance grid reliability,” including natural‑gas, nuclear, coal, oil, geothermal or hydropower facilities.
Alliant estimates that Wisconsin ratepayers will save roughly $400 million over the life of the loan. “To the extent that tax dollars are used to help pay for projects that are approved, that should lower the overall cost over 20‑40 years,” said Wisconsin Citizens Utility Board Executive Director Tom Content.
From Biden‑era planning to Trump‑era delivery
The loan originated in the final days of the Biden administration, when the DOE’s Loan Programs Office was seeking to shore up clean‑energy projects that struggled to obtain private financing. Bloomberg reported that the office considered canceling existing clean‑energy loans after President Trump returned to the White House in January 2025. The current administration chose to preserve the loan and expand its scope, demonstrating a pragmatic approach that balances clean‑energy goals with reliable, affordable power for families.
Secretary Wright praises the deal
U.S. Secretary of Energy Chris Wright said, “The Energy Department is delivering on President Trump’s promise to lower electricity costs and unleash the full potential of American energy.” The statement underscores the administration’s commitment to energy independence and cost‑effective solutions for consumers.
Potential expansion beyond storage
Alliant also applied for a federal grant in June to extend the life of coal‑fired generators at the Columbia Energy Center near Portage, a plant the utility had planned to retire by the end of the decade. While the loan does not explicitly bar renewable projects, it gives Alliant the option to repurpose shuttered power plants or build new natural‑gas facilities, ensuring a diversified and resilient energy mix for Wisconsin.
Critics from environmental advocacy groups have warned that the loan’s broad language could fund fossil‑fuel projects, potentially slowing the transition to clean energy. However, the administration’s stance is clear: reliable, affordable power—whether from natural gas, nuclear or other sources—remains essential for Wisconsin families and businesses.
Overall, the $5.1 billion loan represents a significant federal investment that aligns with President Trump’s energy agenda, promises tangible savings for ratepayers, and offers Wisconsin a path toward a more secure and affordable electricity future.
Original reporting: Wisconsin Watch — read the source article.
