Federal Loan Paves Way for Wisconsin Utility Projects
Wisconsin’s third-largest electrical utility could soon see billions in federal backing. On Wednesday, the U.S. Department of Energy announced a $5.1 billion loan directed to Alliant Energy, with $1.6 billion earmarked for Wisconsin Power and Light, Wisconsin Watch reported.
The newly unveiled federal financing package arrives with multiple infrastructure possibilities on the table. According to Alliant spokesperson Cindy Tomlinson, the funding may help underwrite a proposed natural gas storage facility situated in Rock County. It could also support a pair of battery storage installations—one slated for southwestern Wisconsin and another positioned near Sheboygan.
None of these specific ventures are explicitly written into the federal loan language itself. Tomlinson noted that the federal dollars could alternatively fund efforts to restart or repurpose shuttered power plants or facilitate the construction of brand-new natural gas facilities. All three locally discussed projects still require formal sign-off from the Wisconsin Public Service Commission.
Wisconsin Ratepayers May Save 400 Million Dollars
Utility officials estimate that Wisconsin ratepayers will save $400 million over the life of the loan.
“To the extent that tax dollars are used to help pay for projects that are approved,” Wisconsin Citizens Utility Board Executive Director Tom Content wrote in an email, “that should lower the overall cost over 20-40 years.”
Loan Terms Allow Utility to Direct Funding
The high-stakes financing deal traces its origins back to the final days of the Biden administration. During that period, the Department of Energy’s Loan Programs Office focused heavily on shoring up clean energy projects that struggled to secure traditional commercial bank financing. Following President Trump’s return to the White House in January 2025, the office briefly mulled cancelling existing clean energy loans, Bloomberg reported.
The revised loan language does not explicitly bar spending on renewable energy infrastructure. Instead, the updated terms allow the utility to direct funding toward energy infrastructure and related projects designed to increase supply or enhance grid reliability. Eligible categories explicitly include nuclear, coal, oil, natural gas, geothermal, and hydropower power generation facilities.
“The Energy Department is delivering on President Trump’s promise to lower electricity costs and unleash the full potential of American energy,” U.S. Secretary of Energy Chris Wright said in a statement.
Beyond the newly announced loan, Alliant applied for a federal grant this past June. That application seeks to extend the operational life of coal-fired generators owned by the utility at the Columbia Energy Center near Portage, a facility where operators previously planned to retire the coal units before the end of the decade.
