The U.S. Department of Agriculture has awarded a $3.3 billion loan to Oglethorpe Power Corporation to finance the Smarr Combined-Cycle electric generating facility in Monroe County, Georgia. U.S. Secretary of Agriculture Brooke L. Rollins announced the loan during a visit to the construction site. The USDA said the loan is the largest ever issued through its Rural Utilities Service.
Meeting Rising Electricity Demand
The investment comes as electricity demand increases amid technological advances and the expansion of energy-intensive industries. The project is intended to expand Georgia's dependable electricity supply while helping electric cooperatives manage the cost of building new generation capacity.
Oglethorpe Power supplies wholesale electricity to 38 member cooperatives that collectively serve nearly 5 million people across Georgia, including areas in and around Columbus. The Smarr facility will generate electricity using combined-cycle technology, which uses natural gas to power a combustion turbine and then captures waste heat to produce additional electricity through a steam turbine.
Lower-Cost Financing for Infrastructure
The USDA emphasized that lower-cost federal financing can help reduce the financial burden associated with major infrastructure investments. However, the department noted that the loan does not automatically mean customers will see lower electricity bills. Actual rates depend on fuel prices, construction costs, financing expenses, utility operations, and how those costs are ultimately reflected in customer rates.
Oglethorpe Power's electricity portfolio includes natural gas, coal, nuclear, and hydroelectric generation. Federal officials said the project will help strengthen the electrical grid and provide reliable power as demand continues to grow.
