Duke Energy has reached an agreement with Brookfield, allowing Brookfield to acquire a 19.7% indirect equity interest in Duke Energy Florida for $6 billion. The transaction is structured as an all-cash deal and is part of Duke Energy’s plan to support growth in its electric and gas utilities.
The investment will help fund Duke Energy Florida’s increased five-year capital plan, which now totals $16 billion through 2029. This plan focuses on grid modernization, resiliency initiatives, and expanding generation capacity to serve the company’s growing customer base in central and western Florida. As a result of this partnership, Duke Energy’s overall five-year capital plan rises to $87 billion.
Duke Energy remains the majority owner and operator of Duke Energy Florida, retaining an 80.3% stake in the business. There will be no changes to the workforce, operations, or leadership team in Florida.
Harry Sideris, president and chief executive officer of Duke Energy Florida, stated: “For more than a century, we’ve had the privilege of serving extraordinary Florida communities, which are now some of the most dynamic and fastest growing in the nation. We’re pleased to have Brookfield, a highly regarded infrastructure investor, as a long-term partner in Duke Energy Florida. This significant transaction at a compelling valuation best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period. It also materially strengthens Duke Energy’s overall credit profile, which in turn enables us to invest in our energy modernization plans across our entire footprint – all while helping keep prices as low as possible for our customers.”
Sam Pollock, chief executive officer of Brookfield’s infrastructure group, commented: “We are delighted to partner with Duke Energy in a critical business and premier regulated utility like Duke Energy Florida through Brookfield’s Super-Core Infrastructure strategy. We look forward to supporting the continued growth of Duke Energy Florida’s regulated asset base and, accordingly, ensuring excellent service delivery for its customers. This transaction underscores our patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth, and that generate stable long-term cash flows across market cycles.”
Melissa Seixas, state president for Duke Energy Florida added: “Duke Energy’s commitment to our customers and communities is unwavering, driving us to continuously find innovative ways to meet the moment for our customers. This exciting partnership allows us to do just that. This partnership will create value for all of our communities as we invest in generation, transmission and distribution enhancements that increase reliability, maintain affordability and support future economic development in our state.”
Brookfield will make its investment through phases between early 2026 and 2028 unless it chooses to accelerate funding sooner. The agreement is subject to regulatory approvals from agencies including the Federal Energy Regulatory Commission.
Duke Energy serves approximately 8.6 million electric customers across several states including North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky.
Brookfield Asset Management manages over $1 trillion globally with investments focused on real assets such as utilities and transport sectors.
More information about this transaction can be found at https://www.duke-energy.com/News-Center.
