Duke Energy has signed a definitive agreement with Brookfield Asset Management, wherein the latter will acquire a 19.7% indirect equity interest in Duke Energy Florida for $6bn.
This all-cash transaction will enhance Duke Energy’s financial stability and support its energy modernisation strategy.
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Duke Energy will allocate $2bn of the proceeds from the deal towards its five-year capital plan, now estimated at $87bn.
The remaining proceeds, amounting to $4bn, are earmarked for reducing the holding company’s corporate-level debt.
Brookfield’s investment will be channelled through Florida Progress, the parent entity owning all of Duke Energy Florida.
The acquisition will occur in phases, with Florida Progress receiving $2.8bn at the initial closing, anticipated in early 2026, followed by $200m by the end of that year.
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By GlobalDataAn additional $2bn is expected in 2027, with the final $1bn due in 2028. Brookfield retains the option to expedite the full $6bn investment.
Duke Energy will retain majority control with an 80.3% interest and continue managing operations at Duke Energy Florida.
Duke Energy president and CEO Harry Sideris said: “We are 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 modernisation plans across our entire footprint – all while helping keep prices as low as possible for our customers.”
The additional funds from this transaction will help increase investments in the state to more than $16bn by 2029.
The completion of this transaction is contingent upon regulatory approvals from various federal bodies including the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the US, and a review by the Nuclear Regulatory Commission.
Brookfield infrastructure group CEO Sam Pollock said: “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.”
JP Morgan Securities is acting as financial advisor to Duke Energy, while Skadden, Arps, Slate, Meagher & Flom is serving as legal advisor.
RBC Capital Markets and Kirkland & Ellis are providing financial and legal advisory services, respectively, to Brookfield.
In February 2025, Duke Energy Florida announced plans to develop four new solar energy sites, which will contribute an additional 300MW of capacity to the electric grid.
The company has also submitted its 2025 Solar Base Rate Adjustment proposal to the Florida Public Service Commission.
