Duke Energy has announced a definitive agreement for Brookfield, through its Super-Core Infrastructure strategy, to acquire a 19.7% indirect equity interest in Duke Energy Florida (DEF) for $6 billion. Brookfield is an infrastructure investor with over $200 billion in assets under management across sectors including utilities and transport.
The investment will be made entirely in cash and is expected to help Duke Energy serve its growing customer base, strengthen its balance sheet, and fund ongoing capital needs related to energy modernization. The transaction values DEF at a significant premium compared to Duke Energy’s current public equity valuation. Of the $6 billion proceeds, $2 billion will go toward expanding Duke Energy’s five-year capital plan to $87 billion, while the remaining $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.”
Sam Pollock, chief executive officer of Brookfield’s infrastructure group added: “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 Florida serves about 2 million customers across central and western Florida as a vertically integrated electric utility company. The increase brings total planned investment by DEF within the state to over $16 billion through 2029. The expanded capital plan focuses on grid modernization initiatives as well as enhancements in generation capacity.
“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.”
Brookfield’s investment will be phased: an initial payment of $2.8 billion at closing (expected early 2026), followed by smaller payments totaling $3.2 billion through 2028 unless Brookfield chooses an accelerated schedule.
Duke Energy will retain an 80.3% ownership stake in DEF and continue operational control without changes affecting employees or leadership teams.
The deal requires regulatory approval from bodies such as the Federal Energy Regulatory Commission (FERC), Committee on Foreign Investment in the United States (CFIUS), and possibly the Nuclear Regulatory Commission (NRC).
Duke Energy operates one of America’s largest energy holding companies with electric utilities serving approximately 8.6 million customers across six states; it owns about 55 gigawatts of energy capacity nationwide.
More information can be found at https://www.duke-energy.com/ or via their news center online.
