Duke Energy has announced a new partnership with Brookfield, which will see Brookfield acquire a 19.7% indirect equity interest in Duke Energy Florida (DEF) for $6 billion. The investment is intended to support Duke Energy’s expanded capital plan and strengthen its financial position as it addresses growing energy needs in Florida.
The transaction, structured as an all-cash deal, allows Duke Energy to increase its five-year capital plan by $4 billion, bringing the total to $87 billion. Of the proceeds from the investment, $2 billion will fund additional capital projects at DEF and $4 billion will be used to reduce holding company debt.
“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,” said Harry Sideris, president and chief executive officer. “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.”
Brookfield is recognized for its global investments across utilities and other infrastructure sectors and manages over $200 billion in assets. The company’s investment strategy focuses on long-term holdings in essential infrastructure assets.
“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,” said Sam Pollock, chief executive officer of Brookfield’s infrastructure group. “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.”
DEF serves approximately 2 million customers throughout central and western Florida. The increased capital plan brings total planned investment by DEF through 2029 to over $16 billion. Projects include grid modernization initiatives aimed at improving resiliency and generation capacity enhancements designed to meet rising demand from both population growth and economic development.
“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,” said Melissa Seixas, Duke Energy Florida state president. “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.”
Under terms of the agreement, Brookfield will invest through phases: an initial payment of $2.8 billion is expected at closing (anticipated early 2026), followed by installments through 2028 unless accelerated by Brookfield’s option.
Duke Energy retains an 80.3% stake in DEF along with operational control; there are no planned changes affecting employees or leadership teams within DEF as a result of this transaction.
The deal requires regulatory approvals including from the Federal Energy Regulatory Commission (FERC), review by the Committee on Foreign Investment in the United States (CFIUS), and clearance or non-objection from the Nuclear Regulatory Commission.
Duke Energy operates electric utilities serving 8.6 million customers across several states including North Carolina, South Carolina, Indiana, Ohio and Kentucky; it also provides natural gas services across multiple states.
Brookfield Asset Management manages more than $1 trillion globally with investments spanning public pension plans, endowments, sovereign wealth funds among others.
More details about each company can be found at their respective websites: https://www.duke-energy.com/ for Duke Energy.
