Duke Energy has announced an agreement with Brookfield, a global infrastructure investor, for Brookfield to acquire a 19.7% indirect equity interest in Duke Energy Florida (DEF) for $6 billion. The investment will be made through Brookfield’s Super-Core Infrastructure strategy and is expected to strengthen Duke Energy’s balance sheet and support capital needs associated with its energy modernization efforts.
According to the companies, the transaction will provide DEF with additional resources as it faces growing demand for electricity across central and western Florida. Two billion dollars from the deal will be allocated to DEF’s increased five-year capital plan, which now totals $16 billion through 2029. The remaining $4 billion will be used by Duke Energy to reduce holding company debt.
Harry Sideris, president and chief executive officer of Duke Energy Florida, said, “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 on the partnership: “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.”
Duke Energy will retain an 80.3% stake in DEF and continue operating the business without changes to its workforce or leadership team. The transaction structure allows Brookfield to invest in phases: $2.8 billion at first closing (expected early 2026), another $200 million by end of 2026, $2 billion in 2027, and $1 billion in 2028; Brookfield may choose to fund the full amount sooner.
The agreement is subject to regulatory approvals from agencies including the Federal Energy Regulatory Commission and review by the Committee on Foreign Investment in the United States.
Melissa Seixas, state president of Duke Energy Florida stated: “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.”
DEF serves approximately two million customers throughout central and western Florida.
The expanded capital plan comes amid rising electricity demand across DEF’s service territory due largely to population growth within Florida.
JP Morgan Securities LLC advised Duke Energy on financial matters related to this transaction; Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel. RBC Capital Markets LLC was financial advisor for Brookfield; Kirkland & Ellis LLP provided legal advice.
Duke Energy operates electric utilities serving about 8.6 million customers across six states including North Carolina, South Carolina and Indiana.
Brookfield Asset Management manages over $1 trillion globally focusing on real assets such as utilities and transport sectors.
Further details can be found at duke-energy.com or through regulatory filings available at sec.gov.
