At least $1 billion in projects intended to modernize Georgia’s power grid remain in limbo as President Donald Trump seeks to halt congressionally approved funding for infrastructure and climate projects, according to business, state, nonprofit and education officials.
The money, spread across several projects and grants, was to go toward upgrading existing high-voltage transmission lines with modern conductors and other “grid-enhancing technologies”; adding new lines; and building more solar arrays and battery storage to bring more local generation online and help reduce the frequency and impact of power outages.
The federal money totaled more than $500 million, with local matches that would make more than double that figure available to invest in critical energy infrastructure as the state contends with rising energy costs.
Tim Lieuwen, executive director of the Strategic Energy Institute at Georgia Tech, told The Atlanta Journal-Constitution there was “no question” there is of a contradiction between some of Trump’s actions and his stated aims of supporting energy reliability and growth. But he said once the administration assembles a cabinet and analyzes the projects against its own goals, it may change course.
“This is long-term optimism,” Lieuwen said. “My read of what this administration’s top-line priorities are is: domestic manufacturing, energy reliability, making sure that we have the power to meet surging power demands.”
Credit: AP
Credit: AP
He said building new energy infrastructure, including solar and wind, and encouraging domestic electric vehicles and battery manufacturing, which have also been targeted by Trump, fulfill those aims.
“What I’m saying is: Think about what that means,” Lieuwen said. “If I’m misreading the top-line priorities, that’s a whole other matter.”
Yet, despite at least two judicial orders directing the federal government to resume funding after Trump sought to pause it via executive orders, the fate of the money awarded to Georgia remained unclear as of late Wednesday. The funds were to be divided between the state, utilities and nonprofits that could not or would not say if the funding had been restored.
The U.S. Department of Energy, the source of many of the federal funds, did not immediately respond to a request for comment.
Credit: Ben Gray
Credit: Ben Gray
Kym Meyer, the Southern Environmental Law Center’s litigation director, denounced the administration’s actions.
“The temporary restraining order issued by U.S. District Court is clear — funds need to be unfrozen, and yet they remain inaccessible for many grantees,” Meyer said. “The administration’s deliberate refusal to comply with a court order raises extremely serious constitutional issues.”
Shayla Powell, a spokesperson for the U.S. Environmental Protection Agency, said in an email that “Neither EPA nor the Dept. of Justice can provide further information on pending litigation.”
Shane Hix, a spokesperson for the Georgia Environmental Finance Authority — the lead recipient for a $250 million grid resilience grant — said Wednesday that the agency was still waiting on further guidance from DOE and EPA about the availability of federal funds from the bipartisan infrastructure law and the Inflation Reduction Act, the health and climate law President Joe Biden signed into law.
In addition to the power grid grant, the finance authority was also poised to launch a federally funded home energy rebate program in March for income-qualified consumers to get up to $16,000 back on electric appliances, insulation, air sealing, heating and cooling and other home improvements.
“((The) situation is fluid,” Hix said in an email. “Hopefully, we’ll have more clarity soon.”
The Georgia Environmental Finance Authority was to receive the $250 million for grid improvements alongside a consortium that included nonprofit electric cooperatives and the Georgia Transmission Corp.
Blair Romero, speaking on behalf of Oglethorpe Power, Georgia Transmission and Georgia System Operations, said in an email that the award is “obligated and under contract. Oglethorpe and the family of companies had agreed to invest an additional $257 million in the projects.
“The federal government has paused disbursement of funds from the bipartisan infrastructure law,” she said. “We are evaluating the potential impact on our planned projects and awaiting further guidance from the U.S. Department of Energy.”
Separately, Georgia Transmission, which builds and maintains electricity transmission infrastructure for cooperatives, was awarded another $98 million to upgrade transmission infrastructure and test new grid technologies with other nonprofit utilities. The consortium will also match the $98 million in federal funding.
Previously, Barbara Hampton, Georgia Transmission’s president and CEO, said the investments would help improve electric service, particularly in underserved and rural areas.
Georgia Power, the state’s largest utility with more than 2.7 million customers, was slated to receive $160 million that it planned to match. The company previously said it would use the money to upgrade transmission lines with new conductors and modern technologies like dynamic line rating that are designed to improve efficiency.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
Since the start of 2023, Georgia Power ratepayers have faced six hikes the company said was needed to pay for grid improvements, fuel costs and the expansion of Plant Vogtle.
Jacob Hawkins, a spokesperson for Georgia Power, said in an email that the company continues to “evaluate these developments to understand any potential implications to proposed projects that we are undertaking on behalf of our customers.”
A nonprofit that was awarded $156 million to expand rooftop solar and battery storage for low-income Georgians, meanwhile, suggested the funding pause remains in effect.
“While we are disappointed that this pause is coming so close to our anticipated launch … we remain hopeful that a path forward can be found to deliver the promised benefits to Georgia residents without significant delay,” said Alicia Brown, director of the Georgia BRIGHT program administered by the nonprofit Capital Good Fund.
Note of disclosure
This coverage is supported by a partnership with Green South Foundation and Journalism Funding Partners. You can learn more and support our climate reporting by donating at ajc.com/donate/climate.
About the Author
Keep Reading
The Latest
Featured
