USDA Makes Record $3.3B Loan for Oglethorpe's Smarr Gas Plant in Georgia

The U.S. Department of Agriculture has made a $3.3 billion loan to Oglethorpe Power Corporation to help finance the Smarr combined cycle natural gas plant under construction in Monroe County, Georgia, the largest loan ever delivered by USDA's Rural Utilities Service, the U.S. Department of Agriculture announced on October 14.

What Happened

Agriculture Secretary Brooke L. Rollins announced the loan during a visit to the construction site U.S. Department of Agriculture. "Historic times call for historic actions," Rollins said in the release. Oglethorpe President and CEO Annalisa Bloodworth said the loan "will allow us to build the reliable generation Georgia families, farms and businesses need."

America's Electric Cooperatives, the publication of the National Rural Electric Cooperative Association, reported that the loan carries a 30 year term and that Oglethorpe expects it to save more than $25 million a year over that term America's Electric Cooperatives. Over the past 20 years, Oglethorpe has paid about $2 billion in interest to the federal government through RUS financing, according to the same report.

The Plant

The Smarr project is a two unit, 1,425 megawatt combined cycle plant expected to produce enough electricity for about 800,000 homes America's Electric Cooperatives. It sits off Rumble Road near Forsyth and will serve 29 of Oglethorpe's 38 member cooperatives Georgia Public Broadcasting.

The plant will use two GE Vernova 7HA.03 gas turbines. Waste heat from the turbines will make steam for additional generation, and air cooled condensers will replace conventional cooling towers to cut water use Georgia Public Broadcasting. Oglethorpe has said the turbines can eventually run on a blend of hydrogen and natural gas ENR.

Who Is Building It

In January, Oglethorpe selected The Industrial Company (TIC), a Kiewit subsidiary, as engineering, procurement and construction contractor ENR. The plant is going up on cooperative owned land next to an existing gas unit. TIC's contract value was not disclosed. ENR also reported that a 7.8 mile, 500 kV transmission line tied to the project is expected to begin construction in late 2027.

Oglethorpe held a ceremonial groundbreaking on May 7 Georgia Public Broadcasting. The project is expected to create up to 1,200 construction jobs and about 30 permanent positions once running, with operations targeted for 2029 America's Electric Cooperatives.

A Note on Cost

The sources describe the project cost differently. Georgia Public Broadcasting reported a $3.3 billion project cost at groundbreaking Georgia Public Broadcasting. In January, ENR reported an estimated total capital investment of $2 billion to $3 billion ENR. USDA's release states only that the $3.3 billion loan helps finance the facility and does not give a total project cost.

Who Owns It and Why It Matters

Oglethorpe is owned by 38 electric distribution cooperatives that serve nearly 5 million people in Georgia. Its wholesale portfolio includes natural gas, coal, nuclear and hydroelectric generation U.S. Department of Agriculture. "Georgia is growing, and we have to act now so that Georgians have the reliable and affordable power that they deserve," Bloodworth said at the site America's Electric Cooperatives.

The loan also comes amid a push to expand federal lending for rural utilities. NRECA CEO Jim Matheson called on Congress to increase RUS lending authority, noting that "these loans are repaid, making them a prudent investment that benefits both rural communities and taxpayers" America's Electric Cooperatives. Demand for the RUS electric loan program often exceeds authorized levels, according to that report.

Implications for Owners, Developers, Contractors and Subs

• Federal financing is moving big generation. A $3.3 billion RUS loan shows that cooperative utilities can tap low cost federal capital for large plants, which can speed decisions on new capacity.
• Peak labor is large. Up to 1,200 craft workers on one site in middle Georgia will draw electricians, pipefitters, ironworkers and operators from a wide area, competing with data center, battery and manufacturing jobs across the Southeast.
• Subcontract opportunities follow the EPC. With TIC leading, regional firms in civil work, concrete, steel erection, insulation, electrical and instrumentation should look to the EPC's procurement plan rather than the owner.
• Transmission comes next. The 500 kV line expected to start in late 2027 is a separate scope with its own right of way, foundation and stringing work.

What to Watch

• Major equipment deliveries for the two GE Vernova turbines and the pace of steel and piping work through 2027.
• Whether Congress raises RUS lending authority, which would open the door to more cooperative generation projects.
• Remaining environmental permits, including the air quality applications ENR reported had been filed, and the start of the transmission line in late 2027.

Bottom Line

The record USDA loan locks in federal financing for a 1,425 MW gas plant driven by load growth, the same demand that is reshaping power planning nationally, as covered in our look at the power and electrical labor needs of the AI buildout. For contractors, Smarr is a 2029 target with most of the field work still ahead.

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Image credit: Sydnie Cutler, America's Electric Cooperatives, Secretary Rollins announcing the loan at the Smarr project site. Image from the source article.

Sources

• U.S. Department of Agriculture, "USDA Makes Historic $3.3B Loan to Build Electric Generation Facility in Georgia": https://www.usda.gov/about-usda/news/press-releases/2026/10/14/usda-makes-historic-33b-loan-build-electric-generation-facility-georgia
• America's Electric Cooperatives, "Georgia's Oglethorpe Power Gets Record $3.3B RUS Loan for Cutting-Edge Plant": https://www.electric.coop/georgias-oglethorpe-power-gets-record-3-3b-rus-loan-for-cutting-edge-plant
• Georgia Public Broadcasting, "Oglethorpe Power breaks ground on $3.3B Monroe natural gas plant to meet rising demand": https://www.gpb.org/news/2026/05/11/oglethorpe-power-breaks-ground-on-33b-monroe-natural-gas-plant-meet-rising-demand
• ENR, "Oglethorpe Power Picks Kiewit Unit as EPC for $2.5B Gas-Fired Georgia Power Plant": https://www.enr.com/articles/62438-oglethorpe-power-picks-kiewit-unit-as-epc-for-25b-gas-fired-georgia-power-plant